Dear Momentum Options Subscriber,

The Dow Jones Transportation Average ($TRAN, 8,161, down 13) was looking good last week but has stumbled this week following Tuesday’s backtest to support. I mentioned the index has been consolidating between 8,300-8,000 since early October with yesterday’s low reaching 8,103.

Today’s weakness is still holding support at the 50- and 100-day moving averages, and both are leveling out. If support continues to hold this week, I would expect the start of another uptrend to start next week.

It is important for the Transports (and the financial stocks) to hold their ground to help create a more broad-based rally. The climb back to resistance has felt a little top heavy, and a breakout in these two sectors would be a great tell that all-time highs are still in play next month.

Heading into the second half of trading, the Dow is gaining 25 points to 17,837 while the S&P 500 is advancing 2 points to 2,091. The Nasdaq is climbing 18 points to 5,121 and the Russell 2000 is adding 5 points to 1,194. The S&P 500 Volatility Index ($VIX, 15.32, down 0.61) is trying to work its way below 15.

The rest of today’s session will be boring, but I will be watching the shop as we head into the close. As a reminder, I won’t be publishing on Thursday, but I will have a Friday morning Pre-Market Update. There will be no Mid-Market update on Friday, but I could have New Trade or Profit Alerts.

I’m working on another possible New Trade for the portfolio, and I have updated our current trades. The trade could be ready in an hour or so, but only if my conditions are met. However, if you don’t hear from me, have a good Thanksgiving!

Momentum Options Play List

Closed Momentum Options Trades for 2015: 93-38-2 (70%). 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 12:20 p.m. EST.

I hereby disclose that I will be participating in the following trade(s). Every 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 portfolio.


Corning (GLW, $19.01, up $0.05)

GLW (2016) January 20 calls (GLW160115C00020000, $0.33, up $0.01)

Entry Price: $0.44 (11/23/2015)
Exit Target: $1.00
Return: -25%
Stop Target: None

Action: Resistance is at $19.25-$19.50. Support is at $18.75-$18.50.

You can read my detailed write-up from the Nov. 23 Mid-Market update.


Harris (HRS, $83.10, up $0.65)

HRS December 85 calls (HRS151218C00085000, $0.81, up $0.06)

Entry Price: $1.25 (11/19/2015)

Exit Target: $2.50

Return: -35%

Stop Target: None

Action: Resistance is at $83-$83.50. Support is at $82-$81.50.


Wells Fargo (WFC, $55.20, down $0.08)

WFC December 57.50 calls (WFC151218C00057500, $0.16, down $0.02)

Entry Price: $0.38 (11/18/2015)

Exit Target: $0.80

Return: -58%

Stop Target: None

Action: Support is at $54 and the 100- and 200-day moving averages. Near-term resistance is at $56-$56.50.

You can read my write-up on WFC in the Nov. 19 Pre-Market Update.


Jabil Circuit (JBL, $25.45, up $0.03)

JBL December 25 calls (JBL151218C00025000, $1.50, down $0.10)

Entry Price: $0.65 (11/10/2015)

Exit Target: $1.75.

Return: 131%

Stop Target:  $1.30 (Stop Limit)

Action: Overhead resistance is at $25.75-$26. Support is at $25-$24.50.

You can read my detailed write-up on JBL in the Nov. 10 Mid-Market Update.


PowerShares QQQ Trust (QQQ, $114.28, up $0.23)

QQQ December 117 calls (QQQ151218C00117000, $0.42, flat)

Entry Price: $0.63 (11/10/2015)

Exit Target: $1.30

Return: -33%

Stop Target: None

Action: Resistance is at $115-$115.50. Support is at $113-$112.50.


Comcast (CMCSA, $61.29, down $0.37)

CMCSA December 65 calls (CMCSA151218C00065000, $0.17, down $0.08)

Entry Price: $0.74 (11/3/2015)

Exit Target: $1.50

Return: -77%

Stop Target: None

Action: Support is at $61.50 followed by $60 and the 50/100-day moving averages. Resistance is at $62.50-$63.

You can read my detailed write-up on CMCSA in the Nov. 4 Pre-Market Update.


Trades on Hold — other 2015 Portfolio Open positions (2): These are trades that are still open in the portfolio but are down over 50%. They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around. This means I would not open any new positions. I’m still keeping track of the trades and will record the results accordingly when the trade closes or if the options expire. Click on the Open Trades and Closed Trades pages to see all open and closed positions.

Hilton Worldwide Holdings (HLT) December 27 calls — Continue to hold.

iShares Russell 2000 (IWM) December 124 calls — Continue to hold.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options

P.S.  Save 50% Today. Some of the best trading opportunities are dead ahead and we’re going to capture plenty of profits.  Renew today and you’ll not only save big but also receive the brand new special report: 2016 Forecast that I wrote with a few of my fellow InvestorPlace advisors.  In it you’ll discover where we think the market is heading and some of the hottest stocks and sectors you should get into.  Don’t wait.  Renew today and get immediate access to the 2016 Forecast.