Mid-Market Update for 1/30/2017

Small-Caps Get Whacked/ Profit Alert (TSEM/ Trade Alert (RIG)

12:30pm (EST)

Futures were showing a nasty open this morning and when I wrapped up my weekend research after midnight. I mentioned there could be a continued pullback into midweek and when Apple’s (AAPL) earnings results will “officially” have an impact on the market. Of course, there are also another 100 plus S&P 500 reporting this week and while Apple’s numbers are a big event, there is an entire parade to watch.

These results will have a much broader impact on market trend in the coming weeks along with a number of other variables. It will be important to follow the hidden clues and we have a good game plan in place for the week. This doesn’t mean there won’t be another curveball or two, as political news throughout the week, a Fed update, and Friday’s jobs report will be babble Wall Street will worry about.

While the bulls have been climbing a wall of worry, I have mentioned there could be additional strength into mid-February providing key support levels hold into Wednesday. I’m also waiting for the opportunity to go short, but unlike the pros, I would like to make money when the market pulls back 5%-10% down the road.

Today’s curveball has been the Uncle Charlie of the year with the indexes breaking sharply on the opening pitch. The losses are extending heading into the second half of trading with the market near session lows. The small-caps have fallen the most and the number one area I highlighted this morning.

The Dow is down 159 points to 19,935 while the S&P 500 is falling 19 points to 2,275. The Nasdaq is off 59 points to 5,601 and the Russell 2000 is declining 25 points to 1,345.

I have a Profit Alert for one of our current trades, TSEM, and I have a Trade Alert for RIG as well. I could also have a New Trade ahead of the closing bell so stay locked-and-loaded in case I take action.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 4-0 (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.


Viavi Solutions (VIAV, $8.78, down $0.45)

VIAV March 9 calls (VIAV170317C00009000, $0.40, down $0.25)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: -20%
Stop Target: None

Action: Fresh support is at $8.75-$8.50. Resistance is at $9.


TherapeuticsMD (TXMD, $5.67, up $0.02)

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: Resistance is at $5.75-$6. Support is at $5.25-$5.


Transocean (RIG, $14.10, down $0.80)

RIG March 17 calls (RIG170317C00017000, $0.17, down $0.13)

Entry Price: $0.66 (1/13/2017)
Exit Target: $1.35
Return: -70%
Stop Target: 20 cents (Stop Limit Order)

Action: The Stop Limit at 20 cents has tripped on today’s tumble towards $14.


Tower Semiconductor (TSEM, $21.27, down $0.18)

TSEM February 21 calls (TSEM170217C00021000, $0.90, down $0.10)

Entry Price: $0.65 (1/11/2017)
Exit Target: $1.50 (closed half at $1 on 1/27/17, Limit Order on other half)
Return: 46%
Stop Target: 90 cents (Stop Limit)

Action: The Stop Limit at 90 cents on the other half of the trade has triggered.


Green Dot (GDOT, $26.61, down $0.03)

GDOT March 25 calls (GDOT170317C00025000, $2.40, flat)

Entry Price: $1.30 (1/6/2017)
Exit Target: $5 (closed half at $3 on 1/26/17)
Return: 108%
Stop Target: $2 (Stop Limit on other half)

Action: Resistance is at $26.75-$27. Support is at $26.25-$26.


Sony (SNE, $29.50, down $1.02)

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

Entry Price: $0.65 (12/23/2016)
Exit Target: $1.30 (closed half at 10 cents on 1/23/17)
Return: -81%
Stop Target: None

Action: The company will report numbers on Thursday but said today they would take a $1 billion write-off on its digital movie division.

Fresh support is at $29.25-$29. Resistance is at $30.