Pre-Market Update for 2/15/2017

Bulls Continue Record Run

8:00am (EST)

After a sluggish start, the bulls continued with their current momentum as three of the major four indexes pushed all-time peaks again on Tuesday. The financial stocks led the charge and perhaps got a bump on the Fed’s comments yesterday that their March meeting is still “live”. Another hike in interest rates means more money for the sector but could be damaging for the market, or so the talking heads say.

The Dow gained 92 points, or 0.5%, to settle at 20,504. The blue-chips traded to a low of 20,374 during the morning action with near-term support at 20,400-20,350 getting split. A move below the latter gets 20,200-20,125 back in play. The rebound to session highs set another all-time high with fresh resistance at 20,550-20,600 holding.

The S&P 500 added 9 points, or 0.4%, to close at 2,337. The index tested a low of 2,322 with rising support at 2,325-2,300 holding. The second half run to the closing high was a record peak with expanding resistance now at 2,350-2,375.

The Nasdaq climbed 18 points, or 0.3%, to end at 5,782. Tech held support at 5,725-5,700 on the opening backtest to 5,748. The recovery to 5,783 also represented another lifetime high while clearing lower resistance at 5,750-5,800.

The Russell 2000 gained 4 points, or 0.3%, to finish at 1,396. The small-caps fell a six-pack to 1,386 on the morning low with the 1,385 level holding. Support remains at 1,375-1,370 on a move below this level and was a good sign to see. The push to 1,397 fell shy of another record high by a point and lower resistance at 1,400-1,425.

The S&P 500 Volatility Index ($VIX, 10.74, down 0.33) traded to a high of 11.34 that represented a lower low than Monday with lower resistance at 11.50-12.50 holding. Upper support at 11-10.50 was cleared with the low reaching 10.73. Continued closes below the latter keeps 10 and single-digits in play. The February 1st 52-week low is at 9.97.

I have updated our current trades and I’m working on a fresh idea this morning that could be ready for the Mid-Market update, or sooner. If I take action early, or after the open, I will send out a Trade Alert.

From desk to press, futures look like this: Dow (+35); S&P 500 (+1); Nasdaq 100 (+4).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 9-2 (82%). 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.


Jabil Circuit (JBL, $25.16, down $0.28)

JBL March 26 calls (JBL170317C00026000, $0.65, down $0.05)

Entry Price: $0.65 (2/13/2017)
Exit Target: $1.30
Return: 0%
Stop Target: None

Action: Shares traded to a low of $25.06 yesterday. Support is at $25.25-$25. Resistance is at $25.75-$26.


Flex (FLEX, $16.27, up $0.15)

FLEX March 16 calls (FLEX170317C00016000, $0.50, up $0.05)

Entry Price: $0.40 (2/10/2017)
Exit Target: $0.80
Return: 25%
Stop Target: None

Action: Tuesday’s 52-week peak reached $16.34. Resistance is at $16.25-$16.50. Support is at $15.75-$15.50.


Viavi Solutions (VIAV, $10.62, up $0.04)

VIAV March 10 calls (VIAV170317C00010000, $0.85, up $0.05)

Entry Price: $0.40 (2/8/2017)
Exit Target: $0.80
Return: 112%
Stop Target: None

VIAV March 9 calls (VIAV170317C00009000, $1.65, up $0.05)

Entry Price: $0.50 (1/25/2017)
Exit Target: $2.00
Return: 230%
Stop Target: $1.30 (Stop Limit)

Action: Shares traded to another 52-week high of $10.70 yesterday. Resistance is at $10.75-$11. Rising support is at $10.50-$10.25.


Boston Scientific (BSX, $25.18, down $0.12)

BSX March 25 calls (BSX170317C00025000, $0.65, down $0.05)

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

Action: Tuesday’s low tapped $24.98. Support is at $25-$24.75. Resistance is at $25.50-$25.75.


Tower Semiconductor (TSEM, $22.16, down $0.40)

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

Entry Price: $0.45 (2/7/2017)
Exit Target: $0.90 (closed half at $0.80 on 2/13/2017)
Return: 44%
Stop Target: 35 cents (Stop Limit)

Action: Shares traded down to $22.06 yesterday. Support is at $22-$21.75. Resistance is at $22.75-$23.


TherapeuticsMD (TXMD, $5.86, up $0.06)

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. Yesterday’s peak reached $5.88. Support is at $5.75-$5.50.