October 4, 2017 - MDT Pro Tips A.M.

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.

CURRENT POSITIONS:

GOGO Long at $19.93
Total Premium Collected $1.95

ASNA Long at $14.20
Total Premium Collected $0.75

DUST Long $4.50
Total Premium Collected $0.70

DYN Long at $12.55
Premium Collected $0.48

APA Long Oct $47.50 Call at $3.45

SNAP Long at $15.20

PANW Long Oct $145 Call at $2.44

..........................................................................................

The S & P 500 hit a high of 2,535,13, coming within 4 points of the 2,539.10 objective.

The market closed at 2,534.58, up 5.46 points on the day. The range for the day was 6.28 points. Certainly, a range contraction. Especially when you compare it to the average true range, which is 11.35 points.

Couple this with the fact that VIX also closed to the upside and you start to get the feel that a pullback is coming. With both the S & P and the VIX closing to the upside, you have a divergence.

The VIX closed at 9.51, after hitting a low of 9.30. If the VIX does rally, I do feel that the higher levels will offer resistance. But, it is at the historic level and we need to mindful that a bounce could happen.

Pre open, the market is off about 3 points and should open lower. Watch for support in the 2,532 area.

Friday at 8:30 AM EST we will get the non farm payroll.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16 **
Major level: 9.38 <
Minor level: 8.99 **
Minor level: 8.20
Major level: 7.81

The VIX closed at 9.51. The low for the day was 9.30. The VIX is trying to hold the major 9.38 level.

To move lower, the VIX will need two closes under 8.99.

Minor support should be at 8.98. And minor resistance is at 9.77 and 9.96.

$SPX:

Major level: 2,539.10
Minor level: 2,529.33
Minor level: 2,509.78 **
Major level: 2,500.00
Minor level: 2,492.20 **
Minor level: 2,476.00
Major level: 2,468.80
Minor level: 2,460.98
Minor level: 2,445.33
Major level: 2,437.50

The objective should now be up to 2,539. Yesterday's high was 4 points the objective.
Minor support is at 2,529.30.

QQQ:

Major level: 150.00
Minor level: 148.44
Minor level: 145.31 ***
Major level: 143.75 <
Minor level: 142.18 ***
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81

The QQQ closed at 145.89. The objective is still to 150.

Minor support is at 145.51 and 145.31. Resistance is at 145.48.

IWM:

Major level: 150.00 <
Minor level: 149.22
Minor level: 147.66 **
Major level: 146.88
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63

The IWM closed at 150.33, just above the 150 objective.

149.61 and 148.33 should offer minor support. And minor resistance is at 150.78.

TLT:

Major level: 131.25
Major level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.61**
Minor level: 123.83
Major level: 123.44

The TLT closed at 124.40. A close today under 124.61 implies the TLT should drop to 123.44.

123.83 is minor support and 124.61 is minor resistance.

GLD:

Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.22 **
Minor level: 122.66
Major level: 121.88 <
Minor level: 121.10
Minor level: 119.53
Major level: 118.75

The GLD closed at 120.83. The GLD should drop to 118.75.

Minor support is at 117.19. Minor resistance is at 121.09.

XLE:

Major level: 71.89
Minor level: 71.11
Minor level: 69.54
Major level: 68.75 **
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50

The XLE closed at 68.39. The XLE is holding above the mid band on its daily charts.

68.16 and 67.97 should be minor support. 69.14 could offer resistance.

FXY:

Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33 **
Major level: 85.94 <
Minor level: 85.55 ***
Minor level: 84.77
Major level: 84.38 <

The FXY closed at 85.12, under the 85.55 support level. The objective should still be down to 84.38.

85.16 should offer minor resistance. 84.96 is minor support.

AAPL:

Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.

153.13 should offer minor support. 154.30 should offer resistance.

Short term intra day charts continue to be bearish. Resistance is in the 157 to 159 area.

WATCH LIST:

Bullish Stocks: GOOGL, LMT, BIDU, FDX, DPZ, RTN, LRCX, CELG, PX, ALB, CME, DE, CAT, UTX, RHT, ADP, KSU, KLAC

Bearish Stocks: WBA, TAP, WBA, DXCM, HA, TECK

Be sure to check earnings release dates.