Pre-Market Update for 2/1/2017

Apple (AAPL) Beats/ Shares Up

8:00am (EST)

The bears pushed lower lows into Tuesday’s action but the rebound off near-term support levels continued to keep the current trading ranges intact. The bulls managed a decent January but February will be a tricky month to trade as earnings start to take a backseat.

Apple’s numbers after the close yesterday came in better-than-expected with shares up and north of $125 in after-hours trading. This could provide some relief from last Friday’s ongoing overall market slide along with continued strength in the Drug stocks.

The Dow fell 107 points, or 0.5%, to end at 19,864. The blue-chips traded underwater again on Tuesday with the low reaching 19,784. Support at 19,900-19,800 was breeched but held into the closing bell. A close below the latter gets 19,700-19,600 and the 50-day moving average in play. Resistance is at 20,000-20,150.

The S&P 500 slipped 2 points, or 0.1%, to finish at 2,278. The index tested 2,267 a low of 2,267 intraday with lower support at 2,275-2,270 getting extended for the second-straight session. A close below the latter will likely lead to 2,250-2,245 and the 50-day moving average over the near-term. Resistance is at 2,285-2,300 and the index came within 2 points of trading in the green yesterday.

The Nasdaq added a point, or 0.02%, to settle at 5,614. Tech hit its weakest point midday with the low reaching 5,576 and lower support at 5,625-5,575 holding. A move below the latter could led to additional weakness to 5,500-5,000. Resistance is at 5,650-5,675 easily held following the trip to 5,615 ahead of the final bell. The fifth-straight close above 5,600 remains a bullish signal.

The Russell 2000 jumped 9 points, or 0.7%, to close at 1,361. The small-caps were weak the first hour of action with the low reaching 1,345. Upper support at 1,345-1,340 held with choppy action until the final hours of trading. The surge to 1,363 and session highs afterwards was beautiful along with the close back above the 50-day moving average. Resistance is at 1,365-1,370 followed by 1,380-1,385.

The S&P 500 Volatility Index ($VIX, 11.99, up 0.11) split resistance at 12.50-13.50 following the midday run to 12.99. Support is at 11.50-11 followed by 10.50-10.

I have updated the parameters of our bullish IWM call option position and I could have another New Trade for today’s Mid-Market Update.

From desk to press, futures look like this: Dow (+31); S&P 500 (+4); Nasdaq 100 (+19).

Special Notice: I will be looking into adding text alerts this month but wanted to ensure the transition from my former publisher was complete. Needless to say, never go near a shark tank and I apologize for the snafus they have caused all of us.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 5-1 (83%). All trades are dated and time stamped for verification. New subscribers can look at the past history to see how the trades have played out or to research our Track Records.

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.


iShares Russell 2000 (IWM, $135.23, up $0.94)

IWM March 138 calls (IWM170317C00138000, $1.93, up $0.40)

Entry Price: $1.50 (1/31/2017)
Exit Target: $3
Return: 29%
Stop Target: $1.55

Action: Set an Exit Target at $3. Set an initial Stop Target at $1.55.

We got some nice pin action into the close with the calls trading up to $2.01. Resistance is at $136-$136.50. Support is at $134-$133.50.


Viavi Solutions (VIAV, $8.95, up $0.11)

VIAV March 9 calls (VIAV170317C00009000, $0.50, up $0.08)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: 0%
Stop Target: None

Action: The company topped earnings expectations along with raised guidance for the current quarter. Resistance is at $9-$9.25 with a move above the latter likely leading to $10 and fresh 52-week peaks. Support is at $8.75-$8.50.


TherapeuticsMD (TXMD, $5.81, up $0.16)

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: Yesterday’s high reached $5.90. Resistance $6. Support has moved up to $5.50-$5.25.


Green Dot (GDOT, $26.80, down $0.02)

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: Support is at $26.50-$26.25. A move below the latter will likely trigger the Stop Limit on the other half of the trade. Resistance is at $26.75-$27. Yesterday’s high reached $26.92.


Sony (SNE, $30.27, up $0.83)

February 27 puts (SNE170217P00027000, $0.10, down $0.05)

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 $29.75-$30. Support is at $29.25-$29. Earnings are due out on Thursday.