Mid-Market Update for 1/4/2017

4Q Earnings Around the Corner

2:25pm (EST)

The start of 4Q earnings season gets underway next week and will be the next “big” catalyst that will either take the market to bluer-sky territory, or back to possible lower lows. I will be talking more about the upcoming companies reporting numbers next week and there should be an opportunity to add a number of fresh trades.

Meanwhile, earnings will still be in focus from other companies with different fiscal years and quarters announcing results the rest of this week.

Landec (LNDC), Mistras Group (MG), Resources Connection (RECN), and Sonic (SONC) will try to meet or beat estimates after today’s close.

Thursday’s action includes Constellation Brands (STZ), Franklin Covey (FC), Helen of Troy (HELE), Monsanto (MON), PriceSmart (PSMT), Ruby Tuesday (RT) and Walgreen’s Boots Alliance (WBA).

Friday’s schedule is light with Greenbrier Companies (GBX) being the most notable name reporting earnings.

The bulls are looking for a little follow through today and futures were showing a nice open. The gains are holding heading into the final hours of trading and the close will be important to watch for continued developing clues.

The Dow is up 43 points to 19,945 while the S&P 500 is gaining 11 points to 2,268. The Nasdaq is declining 41 points to 5,470 and the Russell 2000 is higher by 18 points to 1,383.

I have updated our current trades 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, $19.45, up $0.29)

TSEM February 20 calls (TSEM170217C00020000, $0.60, up $0.05)

Entry Price: $0.55 (1/3/2017)
Exit Target: $1.10 (Limit Order on 1/3)
Return: 10%
Stop Target: None

Action: Near-term resistance is at $19.25-$19.50. Support is at $19.

Sony (SNE, $28.51, up $0.22)

January 27.50 puts (SNE170120P00027500, $0.30, down $0.05)

Entry Price: $0.30 (12/23/2016)
Exit Target: $0.60
Return: 0%
Stop Target: None

February 27 puts (SNE170217P00027000, $0.70, down $0.05)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: 8%
Stop Target: None

Action: Resistance is at $28.50. Support is at $28-$27.75.

Array Biopharma (ARRY, $9.09, up $0.53)

ARRY March 10 calls (ARRY170317C00010000, $1.05, up $0.10)

Entry Price: $0.85 (12/21/2016)
Exit Target: $1.70
Return: 23%
Stop Target: None

Action: Resistance is at $8.75-$9 with a close above the latter being a super bullish development. Support is at $8.50-$8.25.