Dear Momentum Options Subscriber,
Thursday’s session showed signs of lower lows and higher highs, which kept Wall Street on its heels, and the action could continue to heat up with today’s jobs report and the other economic news that will hit the tape going into Friday’s close.
The Dow jumped 48 points, or 0.3%, to finish at 17,838. The blue-chips tested a low of 17,703, with near-term support at 17,700-17,650 and the 50-day moving average holding. Resistance at 17,900-18,000 held on the close at session highs.
The S&P 500 popped nearly a 6-pack, or 0.3%, to close at 2,105. The index held short-term support at 2,090-2,085 following the morning dip to 2,088, and it closed above 2,100 on its run to Thursday’s high. Resistance is now at 2,120-2,125.
The Nasdaq galloped higher by 19 points, or 0.4%, to end at 4,971. Tech kissed a low of 4,924 and held the current “double bottom” at 4,923 for the third-straight session. Backup support is at 4,900. The push towards session highs fell just shy of resistance at 4,975-5,000.
The Russell 2000 surged higher by 7 points, or 0.7%, to settle at 1,170. The small-caps slipped 4 points to 1,159 on the morning low, with support at 1,160 holding. The push into resistance at 1,170-1,175 and close above this level was a bullish signal.
The S&P 500 Volatility Index ($VIX, 13.63, down 0.57) made another run to resistance at 14.50-15 after the bulls let the bears test a high of 14.92. The slow fade to 13.62 into the closing bell fell shy of support at 13.50-12.50.
I have New Trade for the portfolio this morning, so let’s get to it.
From desk to press, futures look like this: Dow (-76); S&P 500 (-10); Nasdaq 100 (-20); Russell (-6).
Momentum Options Play List
Closed Momentum Options Trades for 2016: 45-14 (76%). All trades are dated 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 8:00 a.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Tailored Brands (TLRD, $14.44, up $.0.55)
Buy to open the TLRD July 15 calls (TLRD160715C00015000, $1.15, up $0.15) for a maximum price of $1.35.
Action: I like these options at current levels, and you can use a Limit Order up to $1.35 on this morning’s open to get the best fills. These are the regular July options that expire on July 15.
Near-term resistance is at $14.75-$15. Support is at $14-$13.75 on failed momentum.
Inovio Pharmaceuticals (INO, $11.39, up $0.16)
INO July 12 calls (INO160715C00012000, $0.75, up $0.10)
Entry Price: $0.80 (6/1/2016)
Exit Target: $1.60
Stop Target: None
Action: The 52-week high is at $11.69, with yesterday’s peak reaching $11.49. Resistance is at $11.75-$12. Shares are in a rising uptrend and look poised for a breakout. Support is at $11.50-$11.
PowerShares QQQ ETF (QQQ, $110.35, up $0.01)
QQQ July 112 calls (QQQ160715C00112000, $1.21, up $0.06)
Entry Price: $1.15 (5/31/2016)
Exit Target: $2.30
Stop Target: None
Action: Resistance is at $111.50-$112. Support is at $108.50-$108.
Editor and Chief Options Strategist