Mid-Market Update for 12/27/2016

Nasdaq Trips 5,500/ Trade Alert (TIVO)

1:50pm (EST)

The talking heads are still on standby for Dow 20,000 and are missing the bigger picture as Tech has set another record high while clearing the 5,500 level. I mentioned this week is usually bullish and last Friday and today’s close would be additional bullish signals money is moving into the market.

As far as movie stocks, Sony’s (SNE) shares are a little shaky today following news “Passengers” pulled in box-office revenue of $23.1 million versus forecasts for $30-$40 million. To make matter worse, the company music’s division Twitter account was hacked into over the weekend claiming the false death of Britney Spears.

The Dow is gaining 26 points to 19,960 while the S&P 500 is up 6 points to 2,270. The Nasdaq is advancing 31 points to 5,494 and the Russell 2000 is higher by 5 points to 1,377.

I have updated our current trades along with a Trade Alert for TIVO. I’m also working on a New Trade I hope to have ready ahead of the closing bell so stay close to your email inboxes in case I take 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.


Sony (SNE, 28.44, down $0.02)

January 27.50 puts (SNE170120P00027500, $0.40, up $0.10)

Entry Price: $0.30 (12/23/2016)
Exit Target: $0.60
Return: 33%
Stop Target: None

February 27 puts (SNE170217P00027000, $0.65, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: 0%
Stop Target: None

Action: Support is at $28.25-$28. Resistance is at $28.75-$29.


Array Biopharma (ARRY, $8.80, flat)

ARRY March 10 calls (ARRY170317C00010000, $0.95, flat)

Entry Price: $0.85 (12/21/2016)
Exit Target: $1.70
Return: 11%
Stop Target: None

Action: Near-term resistance is at $8.75-$9. A close above the latter could lead to a breakout to double-digits. The recent 52-week peak is at $9. Support at $8.50-$8.25.


CVS Health (CVS, $79.42, up $0.28)

CVS January 82.50 calls (CVS170120C00082500, $0.45, flat)

Entry Price: $0.68 (12/20/2016)
Exit Target: $1.40
Return: -34%
Stop Target: None

Action: Resistance is at $80-$80.50 and the 50-day moving average. Support is at $78.50-$78.


Viavi Solutions (VIAV, $8.40, up $0.03)

VIAV March 9 calls (VIAV170317C00009000, $0.28, flat

Entry Price: $0.37 (12/8/2016)
Exit Target: $1.00
Return: -24%
Stop Target: None

Action: Resistance is at $8.35-$8.40. Support is at $8.25-$8.


TiVo (TIVO, $19.98, down $0.23)

TIVO January 22.50 calls (TIVO170120C00022500, $0.15, down $0.05)

Entry Price: $0.33 (11/30/2016)
Exit Target: $0.70
Return: -54%
Stop Target: None

Action: Close the trade at current levels. The drop below lower support at $20.50-$20 and the 50-day moving average is a bearish development. I want to save the remaining premium to get into fresh positions.