October 7, 2019 - MDT Pro Tips A.M.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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.
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GOGO Long at $19.93
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DUST Long $4.50
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RRC Long at $11.85
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RRC Long at $9.20
RIG Long at $8.81
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FEYE Long at $17.18
Total Premium Collected $0.80
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Friday saw the market continue to bounce from its oversold condition. For the day, the S & P 500 closed 41.38 points higher.
The week closed out at 2,952.01. The intraday range was 35.18 points which was due to the fact that the S & P gapped up 7.93 points at the open.
And Friday closed out at 95% of the range for the day. This does suggest the market should follow through today.
The support area from Friday's daily bar is in the 2,935 to 2,936 area.
With all the selling pressure early in the week, it seems rather remarkable that the S & P closed only 9.78 points lower.
Especially when you consider the fact that the range for the week was 136.59 points. The range was almost 170% of the weekly average true range.
The week actually opened higher and preceded to drop 111.13 points to a low of 2,855.94. From the bottom on Thursday, the S & P rallied 96.07 points into the close.
These two swings totalled 207.20 points.
As it turned out, the weekly price bar closed at 70.3% of the range of the weekly price bar.
And the weekly bar closed out with a hammer bar, which is a bullish price bar.
The support area from last week's weekly price bar is in the 2,924 area. If that level cannot hold, look for support around the 2,904 area.
Pre open, the S & P is trading about 7 points lower.
Earnings season starts in earnest next week. The earnings season begins with a number of large banks reporting early in the week, namely, GS, JPM and WFC, which report next Tuesday after the close.
Here are the Key Levels for the Markets:
$VIX:
Major level: 25.00
Minor level: 24.22
Minor level: 22.66
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75 <<
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
The VIX closed at 17.02 yesterday. The high for the day was 19.97 or about 40 cents above the 19.53 level.
After hitting the high, the VIX proceeded to drop all day and broke under the major 18.75 level.
And it ended the day closing under the minor 17.97 level. This now suggests that if the VIX can close under 17.97 today, it should drop to 15.63.
20.31 should be minor resistance.
Watch for technical support around 16. And resistance at 17.97.
SPX:
Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80 <
Minor level: 2,929.73 **
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
The S & P closed at 2,952.01. The objective for the S & P should be back to the 2,968.80 level.
2,929.70 should offer support. The 2,976 area should offer technical resistance. And watch for resistance at 2,954.
QQQ:
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 185.94 **
Minor level: 182.81
Major level: 181.25
Minor level: 179.69
The QQQ closed at 188.81. At this point, the major 187.50 level should offer support.
The next minor level is 189.06. The QQQ will need two closes above this level to head up to 193.75.
Technical resistance is at 190.
IWM:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.69
Minor level: 151.56
Major level: 150.00
Minor level: 148.44 **
Minor level: 145.31
Major level: 143.75
The IWM closed at 149.14. The midband which is 150.28 should be resistance. This is also right at the major 150 level.
146.88 should offer support. And 148.44 should now be support as well.
TLT:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31 **
Major level: 143.75 <
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
Minor level: 135.84
The TLT closed at 145.99. A close today above 145.31 and the TLT should move up to 150.
143.31 should now be support. 147 should offer technical resistance.
GLD:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.97
Minor level: 141.41 **
Major level: 140.63 <<
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.16
The GLD closed at 141.90. The objective should be to 143.75.
The major 140.63 level should be support.
Watch the technical support level at 141.50.
XLE:
Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25 <<
Minor level: 55.86
Minor level: 55.08
Major level: 54.69
The XLE closed at 57.38. A close today above 57.03 and the XLE should head up to 59.38.
The major 56.25 should offer support. And 57.03 should offer support as well.
AAPL:
Major level: 225.00 <
Minor level: 221.88
Minor level: 215.63 **
Major level: 212.50 <
Minor level: 209.38
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Apple closed at 227.01. Apple closed above the 225 level, which was the objective.
225 should still be support. The 220 area should offer technical support.
WATCH LIST:
Bullish Stocks: AGN, EXPE, DLR, SPLK, EDU, WPC, PAYX, MTH, CMS, LEN, MDCO, TSM
Bearish Stocks: HUM, CLX, JAZZ, LLY, FANG, PLCE, BMRN, WUBA, KFY, AMTD, TDC, TLRY, ALKS
Be sure to check earnings release dates.
