September 15, 2020 - MDT Pro Tips

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.

BMY Long Oct 9th - $59 Call @ $1.45
BMY Short Oct 9th - $63 Call @ $.30

Yesterday, the S & P 500 followed through from the reversal on Friday. For the day, the S & P closed 42.57 points higher.

The day closed out at 3,383.54.

The range for the day was only 39.37 points. This was only 67% of the daily average true range, which is now 58.75.

After a series of expansions, a contraction is to be expected. And we had three consecutive days where the daily range equaled or exceeded the daily average true range.

We know that contractions follow expansions. And expansions follow contractions.

The daily price bar closed at 51% of the range of the daily bar.

Watch the close of 3,383.54 for support. Under this level, there is support around 3,373.55.

Pre open, the S & P is trading about 25 points higher. This would project to an open around 3,408 or about 6 points above yesterday's high of 3,402.93.

Watch for support at yesterday's high on a pullback.

Yesterday opened with a bullish gap of 22.59 points. And the low for the day was 5.39 points under Friday's low.

Assuming the same situation for today, the daily high would project to around 3,397. So, watch this area as well on a pullback. This area also happens to be right around the minor 3,398.35 level, which should be a support level.

CBRL reported and is trade about $1.60 lower.

FDX reports today after the close, along with ADBE.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13
Minor level: 27.35 **
Minor level: 25.78
Major level: 25.00
Minor level: 24.22
Minor level: 22.66
Major level: 21.88
Minor level: 21.10

The VIX closed at 25.85. For the day, the VIX closed 1.02 points lower.

The key now for the VIX is the midband on the daily chart. That level is 25.77 and the VIX managed to drop under it, but closed just above it.

A break under this level and the VIX should head lower.

If the VIX holds at the midband, it should bounce which would suggest the market would reverse lower.

A break under the midband and the market should continue higher.

Technical resistance is right around 28.

S & P 500:

Major level: 3,593.60 <
Minor level: 3,554.55
Minor level: 3,476.45
Major level: 3,437.40
Minor level: 3,398.35 **
Minor level: 3,320.25
Major level: 3,281.20 <
Minor level: 3,242.15
Minor level: 3,164.00
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80

The S & P closed at 3,383.54. The market should open above the 3,398.35 level.

This would suggest that 3,398.35 should be support on a pullback.

And minor support is at 3,360.

Also, the S & P managed to reclaim the midband on the 60 minute chart. That level is now 3,373 and should be support.

Short term trends remain bullish.

QQQ:

Minor level: 298.44
Minor level: 295.31
Major level: 293.75
Minor level: 292.19
Minor level: 289.06
Major level: 287.50
Minor level: 285.94
Minor level: 282.81
Major level: 281.25
Minor level: 279.69
Minor level: 276.56
Major level: 275.00 <
Minor level: 273.44
Minor level: 270.31 **
Major level: 268.75
Minor level: 267.19

The QQQ closed at 275.16. The QQQ closed 4.71 points higher. And the QQQ took out the 275 level.

Support should be at the minor 273.44 level. And watch the 276.56 level on the upside.

The QQQ is right at the midband on the 60 minute chart. That level is 275.95. It needs to clear this level to head higher.

280 is a resistance area.

IWM:

Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.70
Minor level: 151.56 **
Major level: 150.00 HIT
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
Minor level: 135.94

The IWM closed at 153.08, closing 3.93 higher. A close today above 151.56 and the IWM should test 156.25.

153.55 is the midband on the 60 minute chart and the IWM is just under it. It will need to clear this level to head higher.

147 is the midband on the daily chart and should be support. 151.60 should be technical support.

TLT:

Major level: 171.88
Minor level: 171.10
Minor level: 169.53
Major level: 168.75
Minor level: 167.97
Minor level: 166.41
Major level: 165.63
Minor level: 164.85 **
Minor level: 163.28
Major level: 162.50 <
Minor level: 161.72
Minor level: 160.16
Major level: 159.38

The TLT closed at 164.47, closing .01 lower. The objective for the TLT should be to the 165.63 level. But, it needs to clear the minor 164.85 level.

A close under 164.85 today and the TLT should drop to 162.50.

Technical resistance is still around 166. And also around 165. Watch this area.

Short term charts remain bearish.

GLD:

Major level: 190.63
Minor level: 189.85
Minor level: 188.28
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38
Minor level: 183.60 **
Minor level: 182.03
Major level: 181.25
Minor level: 180.47
Minor level: 178.91
Major level: 175.00

The GLD closed at 183.89. The GLD closed 1.44 higher on the day.

Watch the 183.60 level. This should be a support level. A break under it and the GLD should head lower.

Short term momentum has turned bearish. The technical resistance level is 184. If the GLD can clear 184, it should head higher.

XLE:

Minor level: 41.41
Major level: 40.63
Minor level: 39.83
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.15
Major level: 34.37
Minor level: 33.59
Minor level: 32.03 **
Major level: 31.25
Minor level: 30.47
Minor level: 28.90
Major level: 28.12

The XLE closed at 32.87. Watch the minor 32.03 level. If the XLE can hold this level, it should make a push higher. The target would then be 34.37.

Short term the XLE is oversold. It did move above the lower band on the 60 minute chart, which is now 32.24. This should be support on a retest.

Looking for a bounce.

AAPL:

Major level: 150.00
Minor level: 146.88
Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00
Minor level: 121.88
Minor level: 115.63 **
Major level: 112.50 <
Minor level: 109.13

Apple closed at 115.36. Apple closed 3.36 higher. Watch to see if Apple can close above 115.63.

Two closes above 115.63 and Apple should test 125.

Also, Apple closed under the upper band on the daily chart. That price level is 125 and should now be resistance.

114.20 is the midband on the 60 minute chart and Apple is trading just above it. If it can clear the midband, I would expect a retest of the upper band on the daily chart.

WATCH LIST:

Bullish Stocks: RH, ALGN, FDX, MCD, DE, CAT, BYND, NKE, GH, PGR, CSX, IRBT, DKS, RDFN, VSLR, SFIX, UBER, DAR

Bearish Stocks: LMT, BDX, FLT, MLM, BA, AMP, HSY, GD, KEYS, BAX, LDOS, MAN, EFA, LAMR, CRUS BLUE