Pre-Market Update for 2/3/2017

Bears Winning Seesaw Action

8:00am (EST)

The bears escaped Thursday’s wild action to get the majority win and are on track to take the week, pending this morning’s jobs report. The bulls are looking for strong numbers and need some good news to recover the slight weekly losses along with momentum. A disappointing report could lead to lower lows and a possible break below the recent trading ranges.

The Dow slipped 6 points, or 0.03%, to settle at 19,884. The blue-chips held upper support at 19,800-19,700 following the dip to 19,831 on the open. A move below the latter would be a bearish development. The run to 19,922 afterwards failed lower resistance at 20,000-20,125.

The S&P 500 advanced a point, or 0.1%, to close at 2,280. The index fell to a low of 2,271 shortly after the opening bell while holding lower support at 2,275-2,270. Resistance at 2,285-2,300 held following the rebound to 2,283.

The Nasdaq dropped a 6-pack, or 0.1%, to end at 5,636. Tech kissed a low of 5,616 during the opening minutes with support at 5,625-5,575 holding. Lower resistance at 5,650-5,675 was cleared following the trip to 5,656 but failed to hold into the close.

The Russell 2000 gave back 4 points, or 0.3%, to finish at 1,354. The small-caps bottomed at 1,354 on the opening ruckus with upper support at 1,355-1,350 getting stretched by a point. Lower resistance at 1,365-1,370 also held by a point following the run to 1,364 intraday.

The S&P 500 Volatility Index ($VIX, 11.93, up 0.12) spiked to a high of 12.47 during the first half of action with resistance at 12.50-13.50 standing strong. The backtest to 11.62 held support at 11.50-11.

From desk to press, futures look like this: Dow (+32); S&P 500 (+3); Nasdaq 100 (+10).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 7-1 (88%). 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.


Viavi Solutions (VIAV, $9.28, down $0.01)

VIAV March 9 calls (VIAV170317C00009000, $0.55, flat)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: 10%
Stop Target: None

Action: Resistance is at $9.50-$10. Yesterday’s 52-week peak reached $9.45. Support is at $9-$8.75.


TherapeuticsMD (TXMD, $5.88, up $0.06)

TXMD June 7.50 calls (TXMD170616C00007500, $0.70, up $0.05)

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

Action: Resistance is at $6 with Thursday’s top reaching $5.89. Support is at $5.50-$5.25.


Sony (SNE, $31.94, up $1.70)

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 $32. Support is at $31.50-$31.