Pre-Market Update for 1/24/2017

Another Slow Start

8:00am (EST)

The bears continued their recent pattern of getting off to a good start for the week following Monday’s pullback. The bulls were able to hold the bottom of the trading ranges once again but are facing continued pressure of lower lows. Volatility remains low and below key support levels and continues to be the main clue we are watching.

The Dow fell 27 points, or 0.1%, to settle at 19,799. The blue-chips traded up to 19,833 on the open but fell well shy of resistance at 19,900-20,000. Support at 19,800-19,725 held following the backtest to 19,732. Backup help is at 19,600-19,500 and the 50-day moving average.

The S&P 500 gave back 6 points, or 0.2%, to close at 2,265. The index made a half-point run to 2,271 at the start of trading with lower resistance at 2,275-2,300 easily holding. Support is at 2,260-2,250 was split following the intraday drop to 2,257. A move below the latter could lead to a continued backtest to 2,240-2,235 and the 50-day moving average.

The Nasdaq slipped 2 points, or 0.04%, to end just under 5,553. Tech tested a high of 5,564 shortly after the open with resistance at 5,575-5,600 holding. Upper support at 5,525-5,500 was tested but held following the midday dip to 5,522.

The Russell 2000 declined 4 points, or 0.3%, to finish at 1,347. The small-caps managed a 2-point run to 1,353 during the morning with resistance at 1,360-1,365 standing strong. Support at 1,345-1,340 and the 50-day moving average was tested and held following the intraday dip to 1,341. There is additional risk to 1,325-1,320 on a move below the latter.

The S&P 500 Volatility Index ($VIX, 11.72, up 0.18) traded higher throughout the session with the high reaching 11.89. Resistance remains at 12.50-13.50. Support is at 11.50-11.

From desk to press, futures look like this: Dow (+2); S&P 500 (-1); Nasdaq 100 (+5).


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, $5.52, up $0.06)

TXMD June 7.50 calls (TXMD170616C00007500, $0.70, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -7%
Stop Target: None

Action: Near-term resistance is at $5.75-$6. Support is at $5.25-$5.


Transocean (RIG, $14.76, down $0.55)

RIG March 17 calls (RIG170317C00017000, $0.28, down $0.17)

Entry Price: $0.66 (1/13/2017)
Exit Target: $1.35
Return: -58%
Stop Target: None

Action: Support is at $14.75-$14.50. Yesterday’s low tapped $14.61. Resistance is at $15.


Tower Semiconductor (TSEM, $20.29, down $0.07)

TSEM February 21 calls (TSEM170217C00021000, $0.60, down $0.05)

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

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


Green Dot (GDOT, $25.61, up $0.03)

GDOT March 25 calls (GDOT170317C00025000, $1.60, down $0.05)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 23%
Stop Target: $1.35 (Limit Order)

Action: Resistance is at $25.75-$26. Support is at $25.25-$25.


Sprint (S, $9.18, up $0.25)

S February 9 calls (S170317C00009000, $0.63, up $0.13)

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

Action: Shares traded to a 52-week high of $9.25 yesterday. Resistance is at $9.25-$9.50. Short-term support is at $9-$8.75.


Sony (SNE, $30.43, down $0.07)

February 27 puts (SNE170217P00027000, $0.15, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30 (closed half at 10 cents on 1/23/17)
Return: -67%
Stop Target: 10 cents, lower to none

Action: We were stopped out of half the trade at 10 cents yesterday. Support is at $30.50-$30.25. Resistance is at $30.75-$31.