Pre-Market Update for 1/25/2017

Record Highs Back in Play

8:00am (EST)

The bulls rebounded big-time on Tuesday to push record highs and the top of the trading ranges. The rally was led by the small-caps along with the Metals, as steel and copper rose significantly. Dow 20,000 is still on hold but could become a reality today on continued momentum.

The Dow jumped 112 points, or 0.6%, to close at 19,912. The blue-chips opened slightly lower at 19,794 and traded down to 19,786. Near-term support at 19,800-19,725 has been holding throughout the month and continues to form a nice base. Resistance remains at 19,900-20,000 with blue-sky territory to 20,200-20,350 on continued closes above the latter.

The S&P 500 soared roughly 15 points, or 0.7%, to end at 2,280. The index held positive territory throughout the session while pushing an all-time high of 2,284. Fresh resistance and fluff is at 2,300-2,325 on continued momentum. Support remains at 2,260-2,250.

The Nasdaq zoomed 48 points, or 0.9%, to finish at 5,600. Tech also traded in positive territory throughout Tuesday while tapping another record high of 5,606. The close above the 5,600 level gets 5,625-5,650 in play. Support has moved up 5,575-5,550.

The Russell 2000 surged 21 points, or 1.6%, to settle at 1,369. The small-caps opened higher and were in a tight range for much of the first half before making a run past 1,370 late in the day. The close above prior resistance gets 1,385-1,400 and possible all-time highs in play again. Support is at 1,345-1,340 and the 50-day moving average.

The S&P 500 Volatility Index ($VIX, 11.72, up 0.18) traded mostly lower for the session following an opening pop to 11.89. Resistance at 12.50-13.50 easily held. Upper support at 11.50-11 was cleared following the low of 11.04. The 52-week low is at 10.93 with a chance at 10 and single-digits coming into play over the near-term.

I have updated our current trades along with raising the Stop Limit on the GDOT trade. I’m also working on a New Trade for this afternoon that could be ready ahead of the Mid-Day Update so stay locked-and-loaded.

From desk to press, futures look like this: Dow (+26); S&P 500 (+3); Nasdaq 100 (+11); Russell (+4).


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, $5.64, up $0.12)

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: Yesterday’s high tapped $5.68. Near-term resistance is at $5.75-$6. Support is at $5.25-$5.


Transocean (RIG, $14.92, up $0.16)

RIG March 17 calls (RIG170317C00017000, $0.31, up $0.03)

Entry Price: $0.66 (1/13/2017)
Exit Target: $1.35
Return: -53%
Stop Target: None

Action: Resistance is at $15.25-$15.50. Support is at $14.75-$14.50.


Tower Semiconductor (TSEM, $20.81, up $0.52)

TSEM February 21 calls (TSEM170217C00021000, $0.80, up $0.25)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.30
Return: 23%
Stop Target: None

Action: Shares traded to a 52-week peak of $20.85 yesterday. Fresh resistance is at $21-$21.25. Rising support is at $20.50-$20.


Green Dot (GDOT, $26.11, up $0.50)

GDOT March 25 calls (GDOT170317C00025000, $1.90, up $0.30)

Entry Price: $1.30 (1/6/2017)
Exit Target: $2.60
Return: 46%
Stop Target: $1.35, raise to $1.50 (Limit Order)

Action: Raise the Limit Order from $1.35 to $1.50.

Shares traded to a 52-week peak of $26.14 on Tuesday. Fresh resistance is at $26.25-$26.50. Support is at $25.75-$25.50.


Sprint (S, $9.19, up $0.01)

S February 9 calls (S170317C00009000, $0.63, flat)

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

Action: Resistance is at $9.25-$9.50. Short-term support is at $9-$8.75.


Sony (SNE, $30.49, up $0.06)

February 27 puts (SNE170217P00027000, $0.10, flat)

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30 (closed half at 10 cents on 1/23/17)
Return: -85%
Stop Target: None

Action: Resistance is at $30.75-$31. Support is at $30.25-$30.