Pre-Market Update for 1/11/2017

Choppy Action Continues

8:00am (EST)

The bulls kept their Tuesday win streak intact despite the sluggish start and back-and-forth action with the bears. Tech stayed strong as the index extending its winning streak to six-straight while volatility closed back below a key level of support.

The Dow dipped 31 points, or 0.2%, to settle at 19,855. The blue-chips tested a low of 19,836 shortly after the open with upper support at 19,800-19,725 easily holding. The midday rebound to 19,957 failed resistance at 19,900-20,000. A move above the latter could lead to a short-term run towards 20,200-20,400.

The S&P 500 closed flat at 2,269. The index split support at 2,260-2,250 after trading down to 2,265 during the opening weakness. The run to 2,279 afterwards cleared lower resistance at 2,275-2,300 but a level that failed to hold into the closing bell.

The Nasdaq climbed 20 points, or 0.4%, to end at 5,551. Tech was choppy during the first hour of trading with the low reaching 5,528. The 3-point pullback held near-term support at 5,525-5,500 before another intraday record run to 5,564. Fresh resistance remains at 5,575-5,625.

The Russell 2000 jumped 13 points, or 1%, to finish at 1,370. The small-caps held positive territory throughout the session while reaching a peak of 1,371. Resistance at 1,375-1,400 continues to be a stickler but is still in play. Support remains at 1,360-1,350.

The S&P 500 Volatility Index ($VIX, 11.49, down 0.07) traded up to 11.79 during the first half of action with resistance at 12.50-13.50 holding for the fifth-straight session. The intraday low of 11.32 cleared support at 11.50-11 but failed to hold.

From desk to press, futures look like this: Dow (-10); S&P 500 (-3); Nasdaq 100 (-3); Russell (-3).


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, $24.97, up $0.29)

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: Shares traded to a high of $25.05 on Tuesday. The 52-week peak is at $25.42. Fresh resistance is at $25-25.50. Support has moved up to $24.50-$24.25.


Sprint (S, $8.76, up $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: Yesterday’s low reached $8.60. Support is at $8.50-$8.25. Resistance is at $8.75-$9.


Tower Semiconductor (TSEM, $20.09, up $0.44)

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: Shares traded to a 52-week high of $20.24 on Tuesday. Fresh resistance is at $20.25-$20.50. Support is at $19.50-$19.25. There was heavy volume in the February 21 and 22 call options as over 5,000 contracts traded hands.


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: SNE made a push to $29.53 yesterday while pushing prior resistance at $29.50-$29.75. A close above $30 would be a slightly bullish development. Support is at $29.


Array Biopharma (ARRY, $9.75, up $0.35)

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 (Stop Limit)

Action: ARRY traded to a fresh 52-week peak of $9.88 yesterday our call options kissing a high of $1.37.

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