September 18, 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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SNAP settled Friday at $15.25, therefore the short $15.50 call expired and you booked the profit from selling the calls.

Based on how SNAP trades this week, I may look to sell another round of calls.

Well finally ... the S & P 500 hit its objective of 2,500!

I admit it was starting to look like it would fail, but Friday, the S & P 500 complied with our objective by closing at 2,500.23. It was also the high for the day.

Hopefully, the levels I share, along with the price objectives, have kept you on the right side of the market. At the very least, with active open upside targets, it tells you that shorting is not the prudent thing to do at the moment.

I've stopped writing about the "do not short" mantra because I am sure by now, it has become apparent to you, that if there are open upside objectives, it tells you there is more room on the upside. And shorting is not the suggested strategy.

So, when would shorting be considered?

The anwer to that lies with the trends on the various timeframes. Both the daily & weekly charts for the S & P 500 remain firmly in an uptrend.

As I mentioned last week, the 30 minute chart has crossed into an uptrend on September 1st.

The 60 minute chart has been the laggard, but on the 14th, it also crossed into an uptrend.

Now everytime time frame is in an uptrend. So, you really do not want trade against that trend.

Having said that, the next upside confirming level is the one to watch. That price level is 2,509.78.

After breaking through a major level, the market often times witnesses profit taking at the next upside level, which is 2,509.78. Of course, the major level just exceeded is 2,500.

The weekly price bar for the S & P 500 also formed a strongly bullish price bar last week.

Based on the bullish price action last week, I would expect support in the 2,484 to 2,487 area.

This of course assumes that the market does experience profit taking and sells off.

Pre open, the market is set to open slightly to the upside.

Earnings continue this week, but the companies reporting are slow as we wind down to the end of this quarter. We will hear from FDX and ADBE tomorrow after the close.

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 10.17, down .27 for the day. The objective should be back to a retest of 9.38.

11.72 should still be resistance. And 10.94 should offer resistance. 9.77 could offer minor support.

$SPX:

Major level: 2,539.10
Minor level: 2,529.33
Minor level: 2,509.78 **
Major level: 2,500.00 < Hit!
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

2,509.78 is the next upside level. Two closes above 2,509.78 and the objective should be to 2,539.

2,500 should offer support now.

Minor support should be at 2,496 and 2,498.

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 146.06. A close today above 145.31 confirms the move up to 150.

The minor 145.31 support level held on Friday. Look for minor resistance at 146.09.

145.51 is minor 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 142.41. The objective should still be to 143.75.

Minor support is now at 141.80. 142.97 could offer some resistance.

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 126.86. The objective should be to 128.13

126.56 is minor support. 127.15 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 125.53, 53 cents above the 125 objective.

On a break under 125, watch the 121.88 level. If the GLD cannot hold this level, a Move down to 115 is possible.

124.22 is minor support. And if the GLD does break under 124.22, a move down to 121.88 is possible.

XLE:

Major level: 68.76
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 65.84. The XLE still needs two closes above 66.41 to move up to 68.76.

Support should now be at 65.63 and 65.23. 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 86.69. The objective should be to 85.94.

87.11 should now be resistance. 85.55 is minor support.

AAPL:

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

Apple reversed and closed at 159.88. 159.38 should now be support. If it can close above 159.38 today, I would expect Apple to start moving back up.

Minor support should be at 157.81.

WATCH LIST:

Bullish Stocks: TSLA, BIDU, FDX, MMM, AMGN, SPZ, ALGN, LLL, RTN, NVDA, COST, CMI, SWK, ALXN, CME, CAT, RCL, UNP

Bearish Stocks: SBNY, PZZA, UBNT, DISH, MDLZ, MNK, RDUS, MDCO

Be sure to check earnings release dates.