December 9, 2016 - MDT Pro Tips A.M.

Total Premium Collected? $1.95

ASNA Long at $14.20
Total Premium Collected $.75

DUST Long $4.50
Total Premium Collected? $.70

DYN Long at $12.55
Premium Collected $.48

FEYE Long at $13.65
Total Premium Collected $.68
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Target achieved!

Quite frankly, I don?t feel that the fact that our objective of 2,250 being hit is a monumental moment.? What I do feel is monumental about it, is the speed of the movement.

Think about this.

On November 4^th, the S & P 500 bottomed at 2,083.79. Two days later was the election here in the United States.

From that bottom on the 4^th, to yesterday, the S & P 500 moved up 167.90 points.? A 168 point move in essentially one month.

If you look at it on a percentage basis from the 2,084 bottom, it was a move of 8%.

What is even more compelling about the move is the fact that all the pundits had it wrong. The talking heads were all discussing how the market would sell off if Trump was elected.

Talk about being wrong.

That?s why I stick with my price levels.? We have clear price levels that should tell us if a move should continue or fail.

The question now is when should profit taking set in?

I mentioned that on Wednesday, both the S & P 500 and the VIX closed to the upside.? This is a rare event.? And even rarer is the fact that it happened again yesterday.

Quite frankly, you have to go back to August 6^th & 7^th of 2012 to see the same situation occur. This only shows you how rare this is.

At that time, the market continued higher for about 60 points, before correcting about 130 points.

The other factors we can look at are the range move and our resistance levels.

As I said, this move has gone 168 points. The last swing move was 203 points.? That was the move off the Brexit bottom.

So, if this move extends the range of the last move, it projects a top around 2,287.

That is interesting because the resistance level above 2,250 is 2,281 and that could be where profit taking comes in.

Having said that, I would like to see a clear violation of 2,250.? By clear violation, I mean a close above it.? Yesterday hit it, but did not close above it.

It may seem odd to be discussing where the market could potentially top out, but I feel we need to be planning for the next pullback. You don?t want to be caught at the top.

If this has been helpful, please let me know. Or if you need further clarification of the price levels, email me at davismdt@gmail.com and I will do my best to answer you.

Continue to monitor the levels for entry points.

Here are the Key Levels for the Markets:

$VIX:

Major level ? 14.06
Minor level ? 13.67
Minor level ? 12.89
Major level - 12.50
Minor level ? 12.11*
Minor level ? 11.33
Major level ? 10.94
Major level ?? 9.38 ***

The VIX closed at 12.64, just 14 cents above the major 12.50 level.? To move up to 14.06, the VIX will need two closes above 12.89.

The fact that it is at its long term support level, means we need to be alert to a pullback.

13.67 should be minor resistance and 12.11 minor support.

?
$SPX:

Minor level ? 2,265.62
Major level - 2,250.00 ***
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50

2,250 objective hit.? 2,242 and 2,234 should be minor support.? 2,257 could be minor resistance.?

2,257 is the next minor resistance level that has to be cleared to head higher.

QQQ:?

Major level - 121.88
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75 *
Minor level - 117.97
Minor level - 116.41 *
Major level - 115.63 ***
Minor level - 114.84
Minor level - 113.28
Major level - 112.50

The QQQ hit the 118.75 objective, closing just under it at 118.57.? Like the S & P 500 closing above, 2,250, I would like to see the QQQ close above 118.75.

To move higher, it will need two closes above 119.53.? 117.97 should be minor support.

TLT:?

Major level ? 125.00
Minor level ? 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.09
Minor level ? 119.53 **
Major level ? 118.75 **
Minor level -? 117.96

The TLT could not close above 119.53 and dropped back to the 118.75 support level. I do expect the TLT to drop further; however, I am looking for a bounce here because of how oversold it is.

I would expect any bounce to fail around 122.

 

GLD: ?

Major level: 115.63
Minor level: 114.85
Minor level: 113.28
Major level: 112.50 *
Minor level: 111.72 **
Minor level: 110.16
Major level: 109.38
Major level: 106.25

Like the TLT, the GLD failed to close above it?s minor confirming level of 111.72.? 112.50 should be resistance, with the next level of 109 to be tested.

XLE:

Major level ? 78.12
Minor level ? 76.56 **
Minor level ? 75.78 *
Major level - 75.00
Minor level - 74.22 *
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53

The XLE closed just under 76.56, at 76.36.? Two closes above 76.56 and the XLE should try and move to 78.

75.78 should be minor support.

FXY:

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 is trying to hold the 84.38 line.? It closed at 84.66 yesterday.? If this level can hold and the FXY bounces off its oversold condition, I would expect that rally to fail. ?Most likely at 86, and at 87.50, if it gets through 86.

Minor resistance should be at 84.77.? 84.47 minor support.

AAPL:

?Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.

Apple is back to almost the 112.50 level.? It needs to close above 112.50 to head higher.? Minor support is at 111.72 and 110.94.

WATCH LIST:

Bullish Stocks: LMT, GS, FDX, GD, BA, RTN, AET, CMI, PSX, SLB, JPM, APA, WDC, CLR, NBL

Bearish Stocks:? AGN, PANW, JAZZ, ATHN, CRM, CRL, UA, HBI

Be sure to check earnings release dates