Dear Momentum Options Subscriber,
I mentioned previously that this week could see some whipsaw action on lower volume as the dust settled from last week’s Brexit drama, and futures confirmed that a temporary bottom may have been made on Monday, as they were strong throughout the night and held into this morning’s open.
Overseas markets are also recovering, and WTI crude oil is trading higher today as well. The price of oil and the action in the market are starting to mirror one another again, and this is another clue we can watch this week to see if it holds merit.
The Dow is currently up 122 points to 17,262, while the S&P 500 is higher by 18 points to 2,018. The Nasdaq is gaining 61 points to 4,656, and the Russell 2000 is climbing 14 points to 1,103.
I’ve been super busy lining up our next batch of trades, and I wanted to get today’s update out ahead of the final hour of trading. I could have a New Trade ready before the close if the action remains strong, but I want to make sure that key levels of support hold before adding fresh positions.
As a reminder, I will be including the Momentum Q&A section in tomorrow’s Pre-Market Update, which will give you the opportunity to ask me questions about the market and our current trades. To submit your questions, simply send your messages to firstname.lastname@example.org, and I will do my best to address them every Wednesday morning.
As a reminder, the SEC’s guidelines prohibit me from answering any questions about securities that are not currently on our Momentum Options buy list or from providing individualized trading advice or recommendations for any specific subscriber or portfolio.
I encourage you to send in any questions that I can help with, particularly those that may benefit the broad Momentum Options audience. If you have a question, chances are there are a handful of other subscribers who may have the same one! Thanks, and I look forward to hearing from you!
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Momentum Options Play List
Closed Momentum Options Trades for 2016: 52-18 (74%). 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 1:35 p.m. EST.
I hereby disclose that I will be participating in the following trade(s).
Morgan Stanley (MS, $24.04, up $0.43)
MS August 28 calls (MS160819C00028000, $0.18, flat)
Entry Price: $0.79 (6/23/2016)
Exit Target: $1.50
Stop Target: None
Action: Resistance is at $24-$24.25. Support is at $23.50-$23.
Viavi Solutions (VIAV, $6.55, up $0.13)
VIAV September 7 calls (VIAV160916C00007000, $0.25, flat)
Entry Price: $0.55 (6/23/2016)
Exit Target: $1.10
Stop Target: None
Action: Support is at $6.50-$6.40. Yesterday’s low reached $6.36. Near-term resistance is at $6.75-$7.
Editor and Chief Options Strategist
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