Mid-Market Update for 2/17/2017

Big Week for Bulls

2:55pm (EST)

Although the last couple of sessions have been choppy with lower lows, the bulls have put in a good week. The morning pullback was expected with futures weak throughout the night and the bigger picture will be on the close and ahead of the upcoming three-day break.

While there are some slightly bearish signs in play, a slight pause, or backtest, is usually healthy, especially given the momentous breakout throughout the week. While six and seven-session win streaks have been snapped with today’s pullback, it is important to remember one day doesn’t make a trend.

I often say calling market tops are never easy but the 2-year chart work I reviewed from this past Monday’s Pre-Market update has my fluff targets firmly in play for the four major indexes. I mentioned I will be doing my annual, longer-term chart work this month and I’m excited to see where the market might be in the next 12-18 months, as well as the next 2-3 months.

I mentioned March and April are usually bullish months to trade the market and that February’s are tricky to change. However, the technical signs, along with 4Q earnings season were the catalysts that allowed me to stay bullish when everyone seems to be bearish. Going against the crowd is never popular but it is one of the reasons I have managed to be successful by doing my homework.

I will have plenty to ramble about next Tuesday but it is time to enjoy a much needed break. I feel blessed to have gotten off to another great start for the year and I’m super excited about the trading opportunities that will arise over the next 10 months. Bullish, or bearish, 2017 is shaping up to be one of the best years to trade the chaos.

Although I predicted volatility would be at multi-year lows, you can bet Bucky it will return at some point. Wednesday’s 11% pop may have been a near-term warning sign and next week could see a more elevated VIX if the headlines remain negative.

Heading into the second half of action, the Dow is down 45 points to 20,574 while the S&P 500 is off a point to 2,345. The Nasdaq is up 11 points to 5,826 and the Russell 2000 is falling 3 points to 1,397.

I have a Profit Alert/ updated our current trades and I will be watching into the close in case we need to take additional action. If you don’t hear from me again, have a great and safe weekend and we will chat on Tuesday.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 10-2 (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.


Jabil Circuit (JBL, $25.92, down $0.05)

JBL March 26 calls (JBL170317C00026000, $0.85, down $0.10)

Entry Price: $0.65 (2/13/2017)
Exit Target: $1.30
Return: 31%
Stop Target: 70 cents (Stop Limit)

Action: Set an initial Stop Limit at 70 cents to start protecting profits?

Resistance is at $26-$26.25. Support is at $25.50-$25.25.


Flex (FLEX, $16.49, up $0.02)

FLEX April 17 calls (FLEX170421C00017000, $0.34, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -3%
Stop Target: None

FLEX March 16 calls (FLEX170317C00016000, $0.60, down $0.05)

Entry Price: $0.40 (2/10/2017)
Exit Target: $1.10
Return: 50%
Stop Target: 50 cents (Stop Limit)

Action: Support is at $16.25-$16. Resistance is at $16.75-$17.


Viavi Solutions (VIAV, $10.69, down $0.01)

VIAV March 10 calls (VIAV170317C00010000, $0.85, flat)

Entry Price: $0.40 (2/8/2017)
Exit Target: $1.20
Return: 112%
Stop Target: 70 cents (Stop Limit)

VIAV March 9 calls (VIAV170317C00009000, $1.75, flat)

Entry Price: $0.50 (1/25/2017)
Exit Target: $2.00 (Limit Order on third)
Return: 250%
Stop Target: $1.55 (Stop Limit)

Action: Support at $10.50. Resistance is at $10.75-$11.


Boston Scientific (BSX, $25.37, up $0.01)

BSX March 25 calls (BSX170317C00025000, $0.95, down $0.05)

Entry Price: $0.70 (2/7/2017)
Exit Target: $1.40
Return: 36%
Stop Target: 75 cents (Stop Limit)

Action: Resistance is at $25.50-$25.75. Support is at $25-$24.75.


TherapeuticsMD (TXMD, $5.63, down $0.13)

TXMD June 7.50 calls (TXMD170616C00007500, $0.55, down $0.05)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -27%
Stop Target: None

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