MomentumOptions.com Mid-Market Update for 1/20/2017

Bulls Hold Fort

12:15pm (EST)

The bulls are showing strength today as the bounce off yesterday’s lows is holding the current trading range intact. Of course, there is still another half of trading to go but the action looks good heading into next week if current levels hold.

The inauguration of Donald Trump today has dominated the business channels with the talking heads taking a backseat to worrying about the market. They are worried about his policies, however, and how they will effect the market but these headlines will take years to play out and they are just blowing smoke.

I was one of the early predictors Donald Trump would win the election and my past publisher was absolutely shocked when I told them last year he would win. In January, they asked for my market outlook and I said it would all depend on the election. My feeling is a businessman running the country would be very prosperous for America and perhaps, the stock market. I refused to let politics clout my judgement and saw the early movement. I told them Dow 20,000 and all-time highs would come into play. I told them the VIX could push 10 and possibly single-digits. Yep, I had the last laugh.

The most important things that mattered to me were lower corporate taxes and the repatriation of letting all that American money overseas come back home. No one knows what will happen over the next four years and that logic applies to the stock market. I’m also not worried if there is a massive selloff this year, or a continued breakout to fresh all-time highs. Either way, I will play the trend if its bullish or bearish.

For right now, we still have to deal with a trading range and why it makes stock and option trading a little trickier. The good news is I do my homework and our current trades are holding up well.

Heading into the second half of trading, the Dow is up 68 points to 19,800 while the S&P 500 is adding 6 points to 2,270. The Nasdaq is higher by 13 points to 5,553 and the Russell 2000 is climbing 9 points to 1,355.

I have updated our current trades and I’m working on another possible new recommendation that I’m hoping to have ready by the closing bell. I’m still doing research but I don’t want to rush anything. If you don’t hear from me by 3pm (EST), have a great and safe weekend.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 3-0 (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.

 

TherapeuticsMD (TXMD, $5.61, down $0.01)

TXMD June 7.50 calls (TXMD170616C00007500, $0.65, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -13%
Stop Target: None

Action: Support is at $5.75-$5.50. Near-term resistance is at $6-$6.25.

 

Transocean (RIG, $15.24, up $0.15)

RIG March 17 calls (RIG170317C00017000, $0.50, up $0.10)

Entry Price: $0.66 (1/13/2017)
Exit Target: $1.35
Return: -24%
Stop Target: None

Action: Near-term resistance is at $15.75-$16. Support is at $15.25-$15.

 

Tower Semiconductor (TSEM, $20.37, up $0.25)

TSEM February 21 calls (TSEM170217C00021000, $0.65, up $0.05)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.30
Return: 0%
Stop Target: None

Action: Resistance is at $20.50-$20.75. Support is at $20-$19.75.

 

Green Dot (GDOT, $25.60, up $0.31)

GDOT March 25 calls (GDOT170317C00025000, $1.65, up $0.10)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 27%
Stop Target: $1

Action: Resistance is at $25.50-$25.75. Support is at $25.25-$25.

 

Sprint (S, $9.00, up $0.03)

S February 9 calls (S170317C00009000, $0.55, up $0.01)

Entry Price: $0.54 (1/6/2017)
Exit Target: $1.10
Return: 2%
Stop Target: None

Action: Resistance is at $9-$9.25. Support has moved up to $8.75-$8.50.

 

Sony (SNE, $30.49, up $0.09)

February 27 puts (SNE170217P00027000, $0.15, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30
Return: -77%
Stop Target: 10 cents (Limit Order on half)

Action: Resistance is at $30.75-$31. Support is at $30.50-$30.25.