Mid-Market Update for 12/19/2016

Earnings for the Week/ Profit Alert (GLD)

2:35pm (EST)

Fourth-quarter earnings season is less than a month away and will be a major catalyst for the market to move higher or lower going forward. January will also have a number of other events that will likely sway market direction and we can plan our setups at a later date.

In the meantime, there are a number of high profile companies announcing their numbers this week. There could be an opportunity for a New Trade in a few of these names so stay tuned.

After today’s close, Worthington Industries (WOR) will confess their quarterly results. Home-builder, Lennar (LEN) topped estimates this morning, ahead of the open.

For Tuesday, BlackBerry (BBRY), Carmax (KMX), Darden Restaurants (DRI), FedEx (FDX), General Mills (GIS) and Nike (NKE) will report their numbers.

On Wednesday, Accenture (ACN), Bed Bath & Beyond (BBBY), Finish Line (FINL), Paychex (PAYX), Red Hat (RHT) and Winnebago Industries (WGO) are scheduled to take the podium.

Thursday’s action includes Cintas (CTAS), ConAgra Foods (CAG) and Rite Aid (RAD) highlighting the session. There are no major earnings announcements on Friday.

Today’s market action can be viewed as listless but I mentioned starting the week off in the green would be a good sign for the bulls. The Dow is up 57 points to 19,900 while the S&P 500 is higher by 6 points to 2,264. The Nasdaq is gaining 30 points to 5,467 and the Russell 2000 is higher by 9 points to 1,374.

I have a Profit Alert for our current GLD trade so let’s go check the action.


Momentum Options Play List

Closed Momentum Options Trades for 2016: 87-36 (71%). 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.


Spider Gold Shares (GLD, $108.48, up $0.43)

GLD January 107 puts (GLD170120P00107000, $1.20, down $0.40)

Entry Price: $0.75 (12/142016)
Exit Target: $2.50-$3.50
Return: 73%
Stop Target: $1.30 (Stop Limit)

Action: The Stop Limit at $1.30 has tripped on today’s continued rebound in Gold.


Viavi Solutions (VIAV, $8.37, down $0.01)

VIAV March 9 calls (VIAV170317C00009000, $0.35, flat)

Entry Price: $0.37 (12/8/2016)
Exit Target: $1.00
Return: -5%
Stop Target: None

Action: Short-term support is at $8.40-$8.35 followed by $8.25-$8. Resistance is at $8.50-$8.75.


TiVo (TIVO, $20.95, up $0.05)

TIVO January 22.50 calls (TIVO170120C00022500, $0.35, flat)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: 6%
Stop Target: None

Action: Support is at $20.50-$20 and the 50-day moving average. Resistance is at $21.25-$21.50.

Rick Rouse