Dear Momentum Stocks Weekly Subscriber,

The bulls made a “follow-through” statement on Wednesday as they pushed towards the market’s upper resistance levels. The bears made a dent in the gains, and the major indices finished off of their intraday highs, but they are now dealing with fresh support and higher highs.

Today’s action could be tight ahead of the latest unemployment numbers that are due out ahead of Friday’s open, but the bulls clearly have the March momentum going for them.

The Dow flew higher by 83 points, or 0.5%, to close at 17,716. The blue-chips traded to a high of 17,790 within the opening minutes to push near-term resistance at 17,800-18,000. Support has moved up to 17,650-17,600.

The S&P 500 gained roughly 9 points, or 0.4%, to settle at 2,063. The index tested fresh resistance at 2,070-2,075 following a run to 2,072 during the first half of the action. Support is at 2,050-2,040 on a pullback.

The Nasdaq advanced 22 points, or 0.5%, to finish at 4,869. Tech soared to 4,899 shortly after the open to fall a point shy of clearing upper resistance at 4,875-4,900. Support is trying to rise to 4,850-4,825, but a close below 4,800 could signal a possible short-term top.

The Russell 2000 added a point, or 0.1%, to end at 1,110. The small-caps stayed within a 10-point range after trading to a high of 1,117 on the opening surge. Upper resistance at 1,120-1,125 continues to be in play. The bulls will be trying to hold fresh support at 1,100 today for the third-straight session. If they are successful, Friday could be bullish with another huge follow-through rally.

The S&P 500 Volatility Index ($VIX, 13.56, down 0.26) traded in negative territory throughout the session after kissing 13.06 intraday. The bears held the 13.50 level, but the bulls are still trying to get below 12.50. However, a close back above resistance and the 15 level will likely put the indices back into their prior trading range.

From desk to press, futures look like this: Dow (+3); S&P 500 (-0.25); Nasdaq 100 (-1); Russell (+0.4).

Chapter 1. Momentum Stocks Weekly Play List

All prices given in this update are current as of Mar. 30, 2016. I hereby disclose that I will be participating in the following trade(s).

The Momentum Stocks Weekly Closed Trade Track Record is 1-7, for a 13% win rate for 2016 (145-32, or 82% win rate, overall since the start of 2011)

View the entire list of open and closed trades by clicking here.

 

Hansen Medical (HNSN, $2.56, up $0.01)

Original Entry Price: $4.50 (2/2/2016)

Lowered Price from Selling Options: N/A

Exit Target: $6.00

Return: -43%

Stop Target: $2.00

Action: Close the trade at current levels.

Although I still believe shares are a good speculative long-term investment, I want to move us on to faster moving in-the-money option trades.

 

Lattice Semiconductor (LSCC, $5.95, up $0.01)

Original Entry Price: $6.77 (12/29/2015)

Lowered Price from Selling Options: N/A

Exit Target: $9.00

Return: -12%

Stop Target: $3.50 (Stop Limit)

Action: Resistance is at $6-$6.25. Support is at $5.50-$5.25 and the 50- and 100-day moving averages.

 

Planet Fitness (PLNT, $15.80, down $0.06)

Entry Price: $17.85 (9/16/2015)

Lowered Price from Selling Options: N/A

Exit Target: $22.00

Return: -11%

Stop Target: $12.00

Action: Resistance is at $15.75-$16. Support is at $15.25-$15 and the 100-day moving average.

You can read my write-up on PLNT in the Nov. 16 Issue.

 

Rave Restaurant Group (RAVE, $5.34, up $0.17)

Original Entry Price (First Position): $13.92 (7/9/2015)

Lowered Price from Selling Options: N/A

Exit Target: $20.00

Return: -62%

Stop Target: $4.00

 

Original Entry Price (Second Position): $11.70 (8/17/2015)

Lowered Price from Selling Options: N/A

Exit Target: $13.00+

Return: -54%

Stop Target: $4.00

Action: Resistance is at $5.25-$5.50. Support is at $5-$4.75.

You can read my latest detailed write-up on RAVE in the March 28 Issue.

 

Huttig Building Products (HBP, $3.75, up $0.04)

Original Entry Price: $4.00 (8/13/2014)

Lowered Price from Selling Options: N/A

Exit Target: $4.15

Return: -6%

Stop Target: $2.00 (Stop Limit)

Action: Resistance is at $3.80-$3.90, and a move above the latter could lead to $4.00 or higher. Support is at $3.60.

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly