Dear Momentum Options Subscriber,
I mentioned in this morning’s Pre-Market Update that the trading session ahead of the Good Friday holiday has been bullish in recent years, with tech closing higher on this day for 15-straight years.
However, that streak is in jeopardy unless the bulls can rally in the final hour of trading today. At the moment, the bears are on track to snap a five-week losing streak if the current action holds into the close.
For the bulls to win the week, the Dow needs to clear 17,603, while the S&P 500 needs to recover the 2,050 level. The Nasdaq came into the week at 4,795, while the Russell 2000 started at 1,101.
Currently, the Dow is down 26 points to 17,476, while the S&P 500 is falling 5 points to 2,031. The Nasdaq is lower by 8 points to 4,760, and the Russell 2000 is down a fraction of a point to 1,075.
The bulls are still holding a strong lead for the month, but next week will bring the last four trading days of March.
While I have warned about potential weakness in the market at the end of March, I’m still slightly bullish for April, as long as backup support levels hold. Next week should provide some additional clues as to how this week’s action affected the rally off of the mid-February lows.
I have updated our only current trade below, but I will be spending the weekend researching New Trades and fine-tuning my watch list. For now, it’s time to relax and enjoy the upcoming three-day weekend. Stay safe, and I will chat with everyone again on Monday morning.
Momentum Options Play List
Closed Momentum Options Trades for 2016: 34-6 (85%). 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 2:40 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.
Nucor (NUE, $46.35, up $0.30)
NUE April 48 calls (NUE160415C00048000, $0.35, up $0.05)
Entry Price: $0.55 (3/17/2016)
Exit Target: $1.10
Stop Target: None
Action: Support is at $46, and there is backup help at $45.50-$45. Resistance is at $47.
Editor and Chief Options Strategist