Dear Momentum Options Subscriber,

The Christmas Eve rally on Wednesday produced another round of fresh highs, but the gains faded into the close of the holiday-shortened session. Despite the pullback, the bulls held positive territory for the most part.

The Dow gained 6 points, or 0.03%, to close at 18,030 on Wednesday. The blue-chips traded to a record high of 18,086 after opening at 18,035 and held positive territory into the close. There is additional fluff to 18,200-18,350 over the near term. Support is at 17,900-17,800 on a dip below 18,000.

The S&P 500 slipped a fraction of a point, or 0.01%, to settle at 2,081. The index traded to another all-time high of 2,087 before going out at its session low. Support is fresh at 2,075, with backup at 2,050. My year-end target from February of 2,100 is still just 1% away.

The Nasdaq added 8 points, or 0.2%, to end at 4,773. Tech made another push at resistance at 4,800 and kissed 4,787, but the lower high from Tuesday’s peak of 4,798 bears watching. Short-term support is at 4,750-4,700.

The Russell 2000 advanced 4 points, or 0.4%, to finish at 1,206. The small-caps led the charge higher on Wednesday and reached a peak of 1,208 while holding short-term support at 1,200-1,190.

The S&P Volatility Index ($VIX, 14.37, down 0.43) stayed below 15 after trading down to 14.01. The lower lows on the VIX are bullish signs, and I’m looking for a close below 13.50 to confirm continued market highs into 2015.

Today is the “official” start of the Santa Claus rally, which includes the last five trading days of the year and the first two trading sessions in January.

From desk to press, futures are shaping up like this: Dow (+30); S&P 500 (+3.5); Nasdaq 100 (+12.5).

Special Notice: I will be monitoring our current trades all session long, but I will not be publishing a Mid-Market Update this afternoon. There could be a possible Trade Alert if any action is needed, but if you do not hear from me today, enjoy the weekend and I will be back on Monday morning.

Momentum Options Play List

Closed Momentum Options Trades for 2014: 97-61 (61%). All trades are dated and time stamped so new subscribers can look at the past history to see how the trades have played out.

Do not risk more than 5% of your trading account on any one trade but do try to take all of the trades. Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless I list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position or if a new trade comes out. Otherwise, follow instructions at all times in the 9 a.m. and 12 p.m. – 1 p.m. updates. Also, I will usually give you a heads-up if I think I’m going to send an email outside of these time frames.

All prices given in this update are current as of 8:30 a.m. EST.

Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

 

Juniper Networks (JNPR, $22.83, up $0.02)

JNPR January 23 calls (JNPR150117C00023000, $0.50, flat)

Entry Price: $0.36 (12/19/2014)

Exit Target: $0.75

Return: 39%

Stop Target: None

 

JNPR April 24 calls (JNPR150417C00024000, $0.95, flat)

Entry Price: $0.81 (12/19/2014)

Exit Target: $1.60

Return: 17%

Stop Target: None

Action: Shares traded to a high of $23.04 on Wednesday. Resistance is at $23.25 and the 200-day moving average. A close above this level would be super bullish. Support is fresh at $22 and the 100-day moving average.

 

Boston Scientific (BSX, $13.13, up $0.07)

BSX February 14 calls (BSX150220C00014000, $0.45, up $0.05)

Entry Price: $0.45 (12/19/2014)

Exit Target: $0.90

Return: 0%

Stop Target: None

Action: Resistance is at $13.25. Support is at $13, followed by $12.85-$12.80 and the 50-day and 200-day moving averages.

 

Fortinet (FTNT, $31.18, up $0.28)

FTNT March 32 calls (FTNT150320C00032000, $1.70, up $0.10)

Entry Price: $1.00 (12/18/2014)

Exit Target: $2.00

Return: 70%

Stop Target: $1.10 (Stop Limit)

Action: Shares traded to another 52-week high of $31.47 on Wednesday. Support is at $29.50-$28. My near-term target is $33-$34, which is where I would like to close half of the trade.

 

American Express (AXP, $94.08, up $0.26)

AXP January 95 calls (AXP150117C00095000, $1.40, up $0.10)

Entry Price: $0.60 (12/15/2014)

Exit Target: $1.50, raise to $2.00+ (closed half at $1.50 on 12/24/2014)

Return: 142%

Stop Target: $1.05 (Stop Limit)

Action: I am raising the Exit Target on the second half of the trade from $1.50 to $2.00+.

Resistance at $94-$95 was tested after a run to $94.79 on Wednesday. A close above $95 gets $100 in play. Near-term support is at $92.

 

Marvell Technology (MRVL, $14.33, up $0.01)

MRVL January 15 calls (MRVL150117C00015000, $0.20, flat)

Entry Price: $0.35 (12/11/2014)

Exit Target: $0.70

Return: -43%

Stop Target: None

 

MRVL February 15 calls (MRVL150220C00015000, $0.45, flat)

Entry Price: $0.55 (12/11/2014)

Exit Target: $1.10

Return: -18%

Stop Target: None

Action: Support is at $14-$13.75. The next wave of resistance is at $14.50-$14.75, and a close above the latter would be super bullish.

 

Pfizer (PFE, $31.42, down $0.03)

PFE February 33 calls (PFE150220C00033000, $0.35, flat)

Entry Price: $0.57 (12/8/2014)

Exit Target: $1.15

Return: -39%

Stop Target: None

 

PFE March 33 calls (PFE150320C00033000, $0.45, flat)

Entry Price: $0.68 (12/8/2014)

Exit Target: $1.40

Return: -34%

Stop Target: None

Action: Support is at $31-$30.50. A close below $30-$29.50 would be bearish. Continued closes above $32 should lead to a breakout to $33-$35. The 52-week high is at $32.96.

You can view the chart work on PFE in the Dec. 9 Pre-Market Update. You can also read about PFE’s fundamentals in the Dec. 9 Mid-Market Update.

 

iShares Russell 2000 (IWM, $119.76, up $0.35)

IWM January 121 calls (IWM150117C00121000, $1.35, up $0.10)

Entry Price: $0.90 (12/5/2014)

Exit Target: $1.80

Return: 50%

Stop Target: $0.95 (Stop Limit)

Action: Resistance is at $120, and Wednesday’s high reached $120.07. The 52-week high is at $120.97. Support is at $118-$117.50.

 

PowerShares QQQ (QQQ, $104.30, up $0.09)

QQQ January 107 calls (QQQ150117C00107000, $0.50, up $0.05)

Entry Price: $0.98 (12/5/2014)

Exit Target: $2.00

Return: -49%

Stop Target: None

Action: Resistance is at $105, and continued higher closes above this level would be bullish. Support is at $103.50-$102.

 

JDS Uniphase (JDSU, $14.01, up $0.13)

JDSU March 14 calls (JDSU150320C00014000, $1.00, up $0.05)

Entry Price: $0.70 (12/3/2014)

Exit Target: $1.40

Return: 43%

Stop Target: $0.80 (Stop Limit)

Action: The 52-week peak is at $14.99. Near-term support is at $13.75, and a drop below this level could lead to $13.50-$13.25.

You can read my full update on JDSU in the Dec. 3 Alert.

 

Flextronics (FLEX, $11.25, up $0.12)

FLEX January 11 calls (FLEX150117C00011000, $0.45, up $0.05)

Entry Price: $0.68 (9/5/2014)

Exit Target: $1.25

Return: -33%

Stop Target: None

Action: Shares held $11.25 after trading to a high of $11.22 on Wednesday. The next wave of resistance is at $11.50. Support is at $11-$10.75.

 

Holiday Savings Event: The local stores have their holiday decorations up and I’m still thinking about gifts, so today I wanted to invite you to join me for a special Holiday Savings Event that I’m throwing for a limited time only. Renew your Momentum Options service today and save $200. It doesn’t matter when your subscription expires because I’ll just extend your current membership. Click here now to take advantage of this savings opportunity!

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options