Pre-Market Update for 2/8/2017

Mixed Session Frustrates Wall Street

8:00am (EST)

The market dished out a little bit of everything on Tuesday as the bulls pushed higher highs while the bears kept the small-caps at bay. Tech had a steady session and volatility stayed subdued as traders continue to wait for signs of a blowoff top, or, another backtest to lower support and the bottom of the trading ranges.

The Dow gained 38 points, or 0.2%, to finish at 20,090. The blue-chips held positive territory throughout the day while reaching a record intraday high of 20,155. There is blue-sky territory towards 20,200-20,350 on continued closes above upper resistance at 20,000-20,125. Support is at 19,900-19,800 on a move below 20,000.

The S&P 500 added a half-point, or 0.02%, to settle at 2,293. The index tested a high of 2,299 during the first half of action with lower resistance at 2,300-2,325 and the all-time high holding. Key support is at 2,285 with backup help at 2,275-2,270 on a move below this level. Yesterday’s midday low reached 2,290.

The Nasdaq advanced 10 points, or 0.2%, to close at 5,674. Tech raced to an all-time high of 5,689 about an hour after the opening bell while pushing lower resistance at 5,675-5,700. Key support is at 5,650 with additional help at 5,625-5,600, if breeched.

The Russell 2000 gave back 5 points, or 0.4%, to end at 1,361. The small-caps traded up to 1,371 shortly after the open with lowered resistance at 1,370-1,375 holding. I warned of the bears targeting 1,360 this week and yesterday’s low tapped 1,357. The close below the 50-day moving average by a fifth-point needs to be respected with fresh support now at 1,345-1,340 on a close below 1,360.

The S&P 500 Volatility Index ($VIX, 11.w9, down 0.08) traded down to 11.06 during the morning rally but fell shy of penetrating support at 11.50-11. The high of 11.67 midday easily held resistance at 12.50-13.50.

From desk to press, futures look like this: Dow (+20); S&P 500 (+1); Nasdaq 100 (+5).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 8-1 (89%). 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.


Boston Scientific (BSX, $25.23, up $0.09)

BSX March 25 calls (BSX170317C00025000, $0.70, up $0.13)

Entry Price: $0.70 (2/7/2017)
Exit Target: $1.40
Return: 7%
Stop Target: None

Action: Set an Exit Target at $1.40. There is no Stop Target.

Resistance is at $25.25-$25.50. Yesterday’s high reached $25.38. Support is at $25-$24.75.


Tower Semiconductor (TSEM, $21.79, down $0.06)

TSEM March 23 calls (TSEM170317C00023000, $0.50, up $0.10)

Entry Price: $0.45 (2/7/2017)
Exit Target: $0.90
Return: 11%
Stop Target: None

Action: Set an Exit Target at 90 cents. There is no Stop Target.

Fresh resistance is at $22-$22.25. The recent 52-week peak is at $22.06. Support is at $21.75-$21.50.


Spider Gold Shares (GLD, $117.46, down $0.24)

GLD March 121 calls (GLD170317C00121000, $1.00, down $0.10)

Entry Price: $0.95 (2/6/2017)
Exit Target: $1.90
Return: 5%
Stop Target: None

Action: Resistance is at $118-$120 and the 200-day moving average. Support is at $117-$116.50 and the 100-day moving average.


Viavi Solutions (VIAV, $9.51, up $0.07)

VIAV March 9 calls (VIAV170317C00009000, $0.70, up $0.05)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.00
Return: 40%
Stop Target: None

Action: Tuesday’s trip to $9.59 was a fresh 52-week high. Resistance is at $9.50-$10. Support is at $9-$8.75.


TherapeuticsMD (TXMD, $5.86, up $0.03)

TXMD June 7.50 calls (TXMD170616C00007500, $0.60, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -20%
Stop Target: None

Action: Support is at $5.75-$5.50. Resistance is at $6.


Sony (SNE, $32.11, up $0.17)

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.