Pre-Market Update for 2/9/2017

Tech Closes at Another Record High

8:00am (EST)

Although Wednesday’s action was tight and choppy, Tech managed to close at a record high but failed to take out its all-time intraday peak. The small-caps slacked for the third-straight session along with the Financial sector before holding its 50-day moving average into the close. The sector rotation has been hard to detect by the talking heads and their nervousness over a pending market correction remains on high alert instead of the current trading range.

The Dow dropped 36 points, or 0.2%, to settle at 20,054. The blue-chips traded in the red throughout the day with the low reaching 20,015. Support is at 19,900-19,800 on a move below 20,000 that has been holding for four-straight sessions. Resistance is at 20,125-20,200 with breakout potential to 20,350-20,400.

The S&P 500 added over a point, or 0.1%, to close at 2,294. The index was slightly weak on the open but held key support at 2,285 on the low. I mentioned there is backup help at 2,275-2,270 and this was a bullish sign following the rebound run to 2,295 afterwards. Resistance remains at 2,300-2,325.

The Nasdaq climbed 8 points, or 0.2%, to end at 5,682. Tech also held key support at 5,650 following the trip to 5,649 shortly after the opening bell. The push to 5,686 into the close cleared lower resistance at 5,675-5,700 but fell shy of another all-time intraday high by 3 points.

The Russell 2000 slipped 2 points, or 0.2%, to finish at 1,358. The small-caps were also underwater throughout Wednesday’s action with the low tapping 1,349. Support is at 1,345-1,340 with a close below the latter being a bearish development. Resistance is at 1,370-1,375.

The S&P 500 Volatility Index ($VIX, 11.47, up 0.18) tested a high of 11.82 with resistance at 12.50-13.50 easily holding. The intraday low of 11.15 held lower support at 11.50-11.

I have updated the parameters of our latest VIAV trade along with setting a Stop Limit to protect profits on the original position. I have also set a soft Stop Target on GLD.

From desk to press, futures look like this: Dow (+2); S&P 500 (+1); Nasdaq 100 (+3).


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.


Viavi Solutions (VIAV, $10.04, up $0.53)

VIAV March 10 calls (VIAV170317C00010000, $0.45, up $0.27)

Entry Price: $0.40 (2/8/2017)
Exit Target: $0.80
Return: 12%
Stop Target: None

VIAV March 9 calls (VIAV170317C00009000, $1.15, up $0.45)

Entry Price: $0.50 (1/25/2017)
Exit Target: $1.50
Return: 130%
Stop Target: 90 cents

Action: Set an Exit Target at 80 cents on the VIAV March 10 calls. There is no Stop Target. Set a Stop Limit at 90 cents on the VIAV March 9 calls to protect profits.

Shares traded to a fresh 52-week high of $10.09 yesterday. Fresh resistance is at $10.25. Rising support is at $9.75-$9.50.


Boston Scientific (BSX, $25.24, up $0.01)

BSX March 25 calls (BSX170317C00025000, $0.75, up $0.05)

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

Action: Wednesday’s high reached $25.32. Resistance is at $25.25-$25.50. Support is at $25-$24.75.


Tower Semiconductor (TSEM, $21.54, down $0.25)

TSEM March 23 calls (TSEM170317C00023000, $0.50, down $0.05)

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

Action: Support is at $21.75-$21.50. Resistance is at $22-$22.25.


Spider Gold Shares (GLD, $118.18, up $0.72)

GLD March 121 calls (GLD170317C00121000, $1.20, up $0.20)

Entry Price: $0.95 (2/6/2017)
Exit Target: $1.90
Return: 26%
Stop Target: $1

Action: Set an initial Stop Target at $1 to protect profits.

Resistance is at $118-$120 and the 200-day moving average. Yesterday’s peak reached $118.59. Support is at $117-$116.50 and the 100-day moving average.


TherapeuticsMD (TXMD, $5.93, up $0.07)

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: Resistance is at $6 with Wednesday’s high tapping $5.95. Support is at $5.75-$5.50.


Sony (SNE, $31.83, down $0.28)

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