Mid-Market Update for 1/10/2017

Transports Holding Floor of Support

2:45pm (EST)

The market has shown some strength today as the Transportations sector is having one of its best days since early December. I recently talked about the correlation between the Dow and the Transportation stocks along with the Dow Theories.

The continued strength in both are bullish signs as the blue-chips are back on track challenging 20K while the Dow Jones Transportation Index ($TRAN, 9,100, up 77) have been holding solid support at 9,000 over the past couple of weeks.

Although the major indexes have backed off today’s highs, the action is pretty much what we have expected as we wait for Friday’s earnings updates from some of the major financial companies.

The Dow is down 5 points to 19,882 while the S&P 500 is up 2 points to 2,217. The Nasdaq is adding 18 points to 5,550 and the Russell 2000 is higher by 8 points to 1,365.

I have updated our current trades so let’s go check the tape.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 1-0 (100%). 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.


Green Dot (GDOT, $25.00, up $0.32)

GDOT March 25 calls (GDOT170317C00025000, $1.35, up $0.10)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 4%
Stop Target: None

Action: Resistance at $24.75-$25. Support is at $24.50-$24.25.


Sprint (S, $8.64, down $0.06)

S February 9 calls (S170317C00009000, $0.45, flat)

Entry Price: $0.54 (1/6/2017)
Exit Target: $1.10
Return: -17%
Stop Target: None

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


Tower Semiconductor (TSEM, $20.04, up $0.39)

TSEM February 20 calls (TSEM170217C00020000, $0.85, up $0.20)

Entry Price: $0.55 (1/3/2017)
Exit Target: $1.10 (Limit Order on 1/3)
Return: 55%
Stop Target: None

Action: Fresh resistance is at $20-$20.50. Support is at $19.50-$19.25.


Sony (SNE, $29.56, up $0.74)

February 27 puts (SNE170217P00027000, $0.40, down $0.05)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: -38%
Stop Target: None

Action: Resistance is at $29.50-$29.75. Fresh support is at $29.


Array Biopharma (ARRY, $9.78, up $0.38)

ARRY March 10 calls (ARRY170317C00010000, $1.30, up $0.10)

Entry Price: $0.85 (12/21/2016)
Exit Target: $1.70
Return: 53%
Stop Target: 90 cents

Action: Set an initial Stop Limit at 90 cents to start protecting profits.

Resistance is at $10. Rising support is at $9.50-$9.25.