MomentumOptions.com Mid-Market Update for 12/12/2016

Gold Holding $1,160 Level/ Profit Alert (CBI)

12:00pm (EST)

I mentioned this morning Gold was holding near-term support near the $1,160 level. Today’s move, along with the rest of the week, should provide great clues on if a continued breakdown is in the cards, or, a rebound is in store providing $1,160 holds. The 2-year chart below show risk to $1,125-$1,100 on a move below the $1,150 level.

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To play a possible continued breakdown, I’m targeting the Spider Gold Shares (GLD, $110.59, up $0.19) on a lose below the $110-109.75 area. If breeched, a backtest to $105-$102.50 could come into play.

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The GLD January 108 puts (GLD170120P00108000, $1.20, down $0.17) are on my Watch List and I would like to get them for under $1. Today’s low has been $1.01. Although this isn’t an official recommendation, this is one of my favorite trades this week so stay licked-and-loaded in case I take action.

Futures were mixed throughout the night and into the open with the market following the same pattern throughout the first half of action. The Dow is up 47 points to 19,804 while the S&P 500 is off a point to 2,258. The Nasdaq is down 29 points to 5,415 and the Russell 2000 is lower by 6 points to 1,381.

I have updated our current trades, including a partial Profit Alert for CBI.

Momentum Options Play List

Closed Momentum Options Trades for 2016: 81-34 (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.
Viavi Solutions (VIAV, $8.57, up $0.04)

VIAV March 9 calls (VIAV170317C00009000, $0.40, flat)

Entry Price: $0.37 (12/8/2016)
Exit Target: $1.00
Return: 8%
Stop Target: None

Action: Resistance is at $8.75-$9. A close above the latter should lead towards a run towards $9.50. Short-term support is at $8.40 followed by $8.25-$8.
E*Trade Financial (ETFC, $35.13, down $0.51)

ETFC January 35 calls (ETFC170120C00035000, $1.51, down $0.24)

Entry Price: $1.20 (11/30/2016)
Exit Target: $2.40
Return: 46%
Stop Target: $1.50 (Stop Limit)

Action:The Stop Limit at $1.50 should trip on continued weakness. Support is at $35-$34.75. Resistance is at $35.50.
PowerShares QQQ Trust (QQQ, $118.79, down $0.71)

QQQ January 122 calls (QQQ170120C00122000, $0.70, down $0.20)

Entry Price: $0.90 (11/30/2016)
Exit Target: $1.80
Return: -22%
Stop Target: None

Action: Support is at $118.50-$118. Resistance is at $119.75-$120.
Rambus (RMBS, $14.19, down $0.08)

RMBS February 14 calls (RMBS170217C00014000, $0.95, flat)

Entry Price: $0.53 (11/30/2016)
Exit Target: $1.10
Return: 79%
Stop Target: 75 cents (Stop Limit)

Action: Resistance is at $14.50 and the 52-week high. Near-term support is at $14-$13.75.
TiVo (TIVO, $21.52, down $0.13)

TIVO January 22.50 calls (TIVO170120C00022500, $0.55, flat)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: 67%
Stop Target: None

Action: Support is at $21.25-$21. Resistance is at $22-$22.50.
Chicago Bridge & Iron (CBI, $36.06, up $0.56)

CBI January 35 calls (CBI170120C00035000, $2.20, up $0.40)

Entry Price: $1.25 (11/25/2016)
Exit Target: $2.50
Return: 76%
Stop Target: $1.50 (Stop Limit)

Action: Close half the trade at current levels.

Resistance is at $36-$36.25. Support is at $35-$34.75.
Imax (IMAX,$31.60, down $0.95)

IMAX January 36 calls (IMAX170120C00036000, $0.20, down $0.10)

Entry Price: $0.90 (11/23/2016)
Exit Target: $1.80
Return: -78%
Stop Target: None

Action: Support is at $31.50-$31.25. Resistance is at $32.

You can read my previous comments on IMAX from the 11/28/16 Pre-Market update.
Microsoft (MSFT, $61.94, down $0.03)

MSFT December 62.50 calls (MSFT161216C00062500, $0.30, down $0.01)

Entry Price: $0.45 (11/22/2016)
Exit Target: 75 cents (Limit Order)
Return: -33%
Stop Target: None

Action: Resistance is at $62-$62.50. Support is at $61.
Lattice Semiconductor (LSCC, $6.97, down $0.05)

LSCC December 7.50 calls (LSCC161216C00007500, $0.05, flat)

Entry Price: $0.30 (10/12/2016)
Exit Target: 60 cents (Limit Order)
Return: -83%
Stop Target: None

Action: Support is at $6.75 and the 50-day moving average. Resistance is at $7-$7.25.

You can read my previous comments on LSCC and the buyout offer of $8.30 a share from the 11/4/16 Pre-Market update
Rick Rouse
MomentumOptions.com