MomentumOptions.com Mid-Market Update for 1/12/2017

Pullback Ahead of Financial Fireworks

3:00pm (EST)

Futures were showing a sluggish start to today’s trading with the overseas markets also in the red. The pullback is no surprise as I mentioned there could be some jitters ahead of earnings from the Financial sector on Friday morning.

While the action is bearish, other bullish signals remain ahead of tomorrow’s events, with volatility low and Tech setting record closes throughout the start of 2017. I have talked about a continued trading range and a unlikely chance of Dow 20K triggering until possibly Friday and that prediction stills seems on track as long as today’s pullback doesn’t worsen into the closing bell.

Friday’s results will be crucial into getting a beed on next week’s action and how the rest of January plays out. While I would like to see higher highs with our bullish trades triggering continued profits, we have warnings signals on when to go short. Remember, you can make just as much money in a down or bearish market as you can in rising and bull markets.

The Dow is down 71 points to 19,882 while the S&P 500 is lower by 5 points to 2,269. The Nasdaq is falling 19 points to 5,544 and the Russell 2000 is declining 15 points to 1,358.

I mentioned I might have a New Trade ready today but the choppy action is cause for pause. In the meantime, I have updated our current trades.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 2-0 (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 8am and 12pm–2pm (EST) updates. Also, I will usually give you a heads-up if I think I’m going to send an Trade Alerts outside of these time frames.

 

Tower Semiconductor (TSEM, $20.24, down $0.14)

TSEM February 21 calls (TSEM170217C00021000, $0.70, flat)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.30
Return: 8%
Stop Target: None

TSEM February 20 calls (TSEM170217C00020000, $1.15, down $0.05)

Entry Price: $0.55 (1/3/2017)
Exit Target: $2 (closed 1/3 @ $1.10)
Return: 107%
Stop Target: $1 (Stop Limit)

Action: Support is at $20-$19.75. Resistance is at $20.50-$21.

 

Green Dot (GDOT, $24.81, down $0.07)

GDOT March 25 calls (GDOT170317C00025000, $1.35, flat)

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

Action: Support is at $24.50-$24.25. Resistance is at $25-25.50.

 

Sprint (S, $8.42, down $0.21)

S February 9 calls (S170317C00009000, $0.35, down $0.05)

Entry Price: $0.54 (1/6/2017)
Exit Target: $1.10
Return: -34%
Stop Target: None

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

 

Sony (SNE, $30.79, up $0.35)

February 27 puts (SNE170217P00027000, $0.15, down $0.05)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: -76%
Stop Target: None

Action: Resistance at $30.50-$30.75. Support is at $30-$29.50.