September 1, 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

FEYE Long at $14.39
FEYE Short Sept 1st $14.50 Call at $0.23

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

Before I begin, I need to mention that there is one position that expires this morning. And that is the short $14.50 call on FEYE. FEYE closed yesterday above the strike price and this morning is trading even higher based on the earnings from PANW.

Hold the position through the close. If the calls are assigned, the return will be about 2.4% for about a week of holding the stock.

As a reminder, the markets are closed this Monday because of the Labor Day Holiday here in America. Enjoy your Holiday Weekend!

The month of August closed out at 2,471.65, up 14.06 on the day. Since the bearish gap on Tuesday, the S & P 500 has gained 46.81 points.

And the market is now back within 30 points of the 2,500 objective. 2,500 is now the objective again because the S & P 500 did in fact close above 2,453.12 for a second day.

The last attempt at 2,500 failed at 2,490.87, so that is the level to watch.

As for the monthly price bar for the S & P 500, it did form a doji bar. However, price is still trading above the upper band on the monthly chart. The upper band is 2,401.22.

At this point, we would expect the upper band to offer support. A break under it would be bearish ... and that has not happened as of yet. Stay with the trend.

As for the weekly price bar, the midpoint through yesterday is 2,451.60. As of yesterday, the market is about 20 points of that level and appears set to open higher this morning.

A close above the midpoint, and more importantly at the higher end of the bar would be bullish.

I mentioned the midband on the 30 minute chart for the S & P 500. And how price managed to take it out on Wednesday. And yesterday, the market gapped up and never retested the midband.

Getting through the midband is a sign of strength. That level is 2,454.20.

And the 30 minute chart is very close to crossing into an uptrend. If that should happen it will help to confirm the target of 2,500.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16 **
Major level: 9.38 <

The VIX closed at 10.59, about one point above the 9.38 objective.

10.94 should be resistance. A close today under 10.94 and it is possible the VIX breaks under 9.38. This would be historic, but I would not count it out.

12.50 should still be resistance.

$SPX:

Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12
Major level: 2,437.50 <
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50

The objective should be to 2,500 ... again,

2,468.80 should offer minor support. And 2,460.90 should also offer support.

On the upside, 2,484.40 could offer resistance.

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 146.20. 150 should now be the objective.

145.31 should be support.

IWM:

Minor level: 144.53
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: 135.15
Major level: 134.37

The IWM closed at 139.73. Target is to 140.63, and the IWM is within one point of it.

139.05 should be strong support.

TLT:

Major level: 128.13
Minor level: 127.74 <
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83

The TLT is almost back to 128.13. Watch this level. If it clears this level, I would expect the TLT to head higher.

126.56 should offer strong support.

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: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97

The GLD jumped and closed at 125.82. A close today above 125.78 and the GLD should test 128.

125.44 should be support. And 126.17 should offer resistance.

XLE:

Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50 <<
Minor level: 61.72 **
Minor level: 60.16
Major level: 59.38

The XLE continues to try and hold the major 62.50 level. It closed just above it again, at 62.97.

To move lower, the XLE will need two closes under 61.72.

62.70 is a minor support level. 63.67 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 reversed and closed at 87.43. If it can clear 87.50, it could retest the prior highs.

AAPL:

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

Apple closed at 164, above the 162.50 level. 163.28 is the next minor level. And Apple has closed above it twice. The objective should be to 165.63.

WATCH LIST:

Bullish Stocks: NOC, HUM, ANTM, LLL, RTN, BABA, AAPL, MCD, SBAC, ADBE, AMT, BLUE, CRM, CNC, SPLK, AABA, ATVI, WERN

Bearish Stocks: ULTA, GWW, FLT, AGU, VRSK, OMC, AKAM, CAKE, SAVE< OTEX, STX, BGS, OMI

Be sure to check earnings release dates