September 14, 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
Short Sept 15th - $15.50 call at $0.28

DIN Long December $40 call at $2.40
DIN Short December $45 call at $1.15

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The S & P 500 continues to inch up to the 2,500 objective. Yesterday closed within 1.63 points of the target.

The market closed at 2,498.37, up 1.89 on the day. Again the range for the day contracted. The intra day range was only 6.23 points. This follows the contraction of 6.40 points from Tuesday.

Needless to say, this same pattern of a large expansion followed by range contractions
continues for the market.

I do need to point out that the 60 minute chart for the S & P 500 is still in an uptrend. However, it is very close to crossing into an uptrend. The 200 ema is 2,463.55 and the 253 day average is 2,463.81. As you can see, they are very close.

I bring this up because if the 60 can cross into an uptrend, it would propel this market even higher.

The market that is bouncing at the moment is the XLE.

I have mentioned that if the XLE can close for two days above 65.63, it could head higher. Yesterday was the first close above it. The XLE closed at 66.23. So, a close today above 65.63 and the XLE should move up to the 69 area.

As this quarter's earning season winds down, there are not a lot of companies reporting. Oracle (ORCL) reports this afternoon after the close.

Pre open, the market should open slightly lower.

Continue to follow the resistance levels for

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: 8.60
Minor level: 7.03
Major level: 6.25

The VIX closed at 10.56, down .02 for the day. I am still biased for a move down to 9.38.

10.94 is a minor resistance level. And 11.72 should also offer resistance.

Minor support is at 10.16. And 7.81 should be short term support difficult to violate on the first attempt.

$SPX:

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

Yesterday's low was 2,492.14, 6 cents under the Minor support level at 2,492.20.

I would expect this level to offer support again. The 2,495 to 2,496 area should be minor support.

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 60 minute chart for the QQQ has moved into an uptrend. This indicates that all timeframes are bullish and buying against support is the best course of action.

The QQQ closed at 146.42. The objective should be up to 150.

Minor support is at 146.09 and 145.70.

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 141.91. The objective should be to 143.75.

Minor support is now at 141.41 and 139.84.

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

The TLT closed at 126.29. The objective should be to 125.

125.78 is minor support. 126.56 should be resistance.

GLD:

Major level: 131.25
Minor 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: 124.22 **
Minor level: 122.66
Major level: 121.88
Minor level: 120.32

The GLD closed at 125.61. The objective should be to 125 and the GLD is within 50 cents of it.

If the GLD breaks under 125, 123.44 should be support. If the GLD can move above 125.56, I would expect it to head higher.

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 closed at 66.23. It took out the 65.63 objective. A close today above 65.63 and the XLE could move up to 70 to 71 area.

Support should now be at 65.63. 67.96 is 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 86.86. A close today under 87.11 and the FXY should drop to 85.94.

87.50 and 87.11 should now be resistance.

AAPL:

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

Apple dropped to 157.91 before rallying to close at 159.65. This is just above the minor 159.38 level I mentioned yesterday. Apples may retest the 158 area today, nut if it holds above 157.81 a bounce could happen.

Minor support should be at 159.58 and 157.81.

WATCH LIST:

Bullish Stocks: BIIB, BIDU, ILMN, WAT, ALGN, AET, ADBE, SAFM, ADSK, CHKP, PLCE, EL, HSY, DPS, CERN, SPLK, BAX, LVS

Bearish Stocks: TAP, ALK, PZZA, THS, DFS, QCOM, AMBA, SAVE, CNK

Be sure to check earnings release dates.