September 29, 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
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DUST Long $4.50
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DYN Long at $12.55
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APA Long Oct $47.50 Call at $3.45

SNAP Long at $15.20

PANW Long Oct $145 Call at $2.44

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Today is the last trading day of September and the end of the third quarter of 2017. If the S & P 500 closed out the month around yesterday's closing price, it would mean another bullish month for the markets.

The monthly low is 2,446.56 and the high, so far is 2,511.75. For the monthly price bar to be considered bullish, the S & P 500 would have to close above 2,479.16, which is the current midpoint.

And yesterday, the market closed at 2,510.06, up 3.02 on the day.

That would mean that the market would have to sell off about 31 points today for the monthly price bar to be bearish.

I doubt that scenario will happen. Most likely, the market will close above 2,479.16 and the trend will continue.

But, we also had a historic close yesterday. Yesterday was the first close above 2,509.78. This now implies that if the S & P 500 closes above 2,509.78 today, the upside objective becomes 2,539.10.

2,507 should be support from yesterday's daily price bar.

Pre open, the market is selling off about 2.50 points, so watch the 2,507 support area I mentioned.

Continue to follow the resistance levels.

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 9.55. The high for the day was 10.16, just under the 10.16 level, I have been mentioning should be resistance.

At this point, the VIX is 17 cents above the 9.38 level.

Does the VIX finally break under 9.38? I do believe it is possible, but it may bounce first. 8.98 is a minor support level. And 9.96 is minor resistance.

$SPX:

Major level: 2,539.10
Minor level: 2,529.33
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

A close above 2,509.78 today and the S & P should move up to 2,539.
Any pullbacks at this point, should be modest. Do not attempt to short.

The next key level after 2,509.78 is 2,519. Closing above 2,519 should tell us if 2,578 gets hit.

Minor suppotrt is at 2,505 to 2,507.

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 144.41. The low for the day was three cetns above the 143.75 level I mentioned, which should be support.

And 144.14 should also offer support. Minor resistance is at 144.92.

IWM:

Major level: 150.00
Minor level: 149.22
Minor level: 147.66 **
Major level: 146.88 <
Minor level: 145.32
Minor level: 144.53 **
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63

The IWM closed at 147.83, closing above 147.66 for the first time. A close today above 147.66 implies a move up to 150.

146.88 is minor support and 148.44 is minor 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
Minor level: 124.61

The TLT gapped down and closed at 124.48. A close today under 124.61 implies a move down to 121.88.

123.44 is minor support and 124.61 is minor 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 gapped down and closed at 122.21. The GLD will need two closes above 122.66 to move up to 125.

Minor support is at 121.09. Minor resistance is at 123.

XLE:

Major level: 71.89
Minor level: 71.11
Minor level: 69.54
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

The XLE closed at 68.49. The 68.76 objective was hit. The high for the day was 68.90.

68.95 is minor resistance. And 68.36 is minor support.

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 85.45, under the 85.55 support level. The objective should be down to 84.38.

If the FXY breaks through the 85.94 level, I would not exptec it to go farther than 87.50.

Minor resistance is at 85.74 and minor support at 85.16.

AAPL:

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

I would expect resistance at the 156 area.

153.13 should be minor support and 154.69 should be resistance. Watch the 152 area for support.

WATCH LIST:

Bullish Stocks: GOOGL, LMT, NOC, BA, BIDU, FDX, GD, DPZ, LLL, NFLX, ALGN, RTN, MCO, CAT, MON, ALB, CME,

Bearish Stocks: WBA, DXCM, K, LULU, UAL, GIS, TCO, CPB, FNSR

Be sure to check earnings release dates