Mid-Market Update for 1/3/2017

Resistance Back in Play/ New Trade (TSEM)

1:35pm (EST)

The last trading day of the year has been treacherous for Tech as the Nasdaq has fallen 13 of the last 16 years. However, last Friday’s pullback is suddenly a memory as the market is once again pushing prior resistance levels.

I often mention trading ranges can get stretched and the downside action from last week came on extremely light volume. The VIX also showed signs of getting stretched and will be trying to close below a key level of support today.

If today’s action holds, a return to record highs could be back in play but it is still early to fully load up on bullish positions. However, I do have a new trade for the portfolio to play continued bullish momentum.

The Dow is up 37 points to 19,799 while the S&P 500 is adding 10 points to 2,249. The Nasdaq is advancing 24 points to 5,407 and the Russell 2000 is off a point to 1,355.

Along with the new trade, I have updated the our current positions so let’s go check the tape.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 0-0 (0%). 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.


Tower Semiconductor (TSEM, $19.10, up $0.07)

Buy to Open TSEM February 20 calls (TSEM170217C00020000, $0.55, up $0.05)

Action: I like these call options at current levels and you can use a Limit Order up to 70 cents to get the best fills. These are the regular TSEM February 20 call options that expire on February 17th, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.


Current Trades

Sony (SNE, $28.19, up $0.16)

January 27.50 puts (SNE170120P00027500, $0.40, flat)

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

February 27 puts (SNE170217P00027000, $0.75, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: 15%
Stop Target: None

Action: Resistance is at $28.25-$28.50. Support is at $28-$27.75 with a move below the latter getting $27-$26 in play.


Array Biopharma (ARRY, $8.65, down $0.14)

ARRY March 10 calls (ARRY170317C00010000, $0.95, down $0.05)

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

Action: Support at $8.50-$8.25. Resistance is at $8.75-$9.