MomentumOptions.com Pre-Market Update for 2/17/2017
Blue-Chips Buck Bears
The bears made a little noise on Thursday but were simply rolling over from their winter nap. While the commotion worried the talking heads, the Dow managed to close the session in positive territory. The choppy trading is something we expected with likely the same results today with February options expiring and Wall Street getting ready for a 3-day weekend. However, we can’t rule out higher highs, either, as I often say the market usually does unexpected things when the suit-and-ties are away.
The Dow gained nearly 8 points, or 0.04%, to end at 20,619. The blue-chips traded to another intraday record high of 20,639 during the first half of action with fresh resistance at 20,800-21,000 holding. The backtest to 20,556 shortly afterwards held near-term support at 20,400-20,350.
The S&P 500 soared 11 points, or 0.1%, to finish at 2,349. The index made another run past 2,351 shortly after the opening bell, its 6th-straight all-time intraday high, with lower resistance at 2,350-2,375 holding. The pullback to 2,338 easily held upper support at 2,325-2,300.
The Nasdaq slipped 4 points, or 0.1%, to settle at 5,814. Tech also set another lifetime high of 5,835 on the open with upper resistance at 5,850-5,875 getting teased. The low tapped 5,796 a little over an hour into trading with rising support at 5,800-5,750 holding. I would like to see the 5,800 level hold into the weekend.
The Russell 2000 declined 5 points, or 0.4%, to close at 1,399. The small-caps made a run to 1,404 but failed a fresh record high by a point. The move back below lower resistance at 1,400-1,425 reached a low of 1,391. I mentioned rising support at 1,390-1,385 would be a key area to watch into the weekend and levels I would like to see hold on another backtest. Backup support remains at 1,375-1,370 on a move below the latter.
The S&P 500 Volatility Index ($VIX, 11.76, down 0.21) tested a high of 12.86 intraday with rising and lower resistance at 12.50-13.50 getting breeched. Support remains at 11-10.50 with Thursday’s low tapping 11.69. I would like to see the bulls get below and hold the 11.50 level today.
Our current trades held up well on yesterday’s shaky session. I did not make any trade adjustments this morning but some of our Stop Limits could come into play if their is additional weakness again today.
From desk to press, futures look like this: Dow (-16); S&P 500 (-2); Nasdaq 100 (-3).
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, $25.97, up $0.25)
JBL March 26 calls (JBL170317C00026000, $0.95, up $0.15)
Entry Price: $0.65 (2/13/2017)
Exit Target: $1.30
Stop Target: None
Action: Fresh resistance is at $26-$26.25 with breakout potential to $27-$28 on a close above the latter. Yesterday’s peak reached $26.02. Rising support is at $25.50-$25.25.
Flex (FLEX, $16.47, down $0.06)
FLEX April 17 calls (FLEX170421C00017000, $0.34, down $0.03)
Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Stop Target: None
FLEX March 16 calls (FLEX170317C00016000, $0.65, down $0.05)
Entry Price: $0.40 (2/10/2017)
Exit Target: $1.10
Stop Target: 50 cents (Stop Limit)
Action: Shares tested a low of $16.32 yesterday. Support is at $16.25-$16. Resistance is at $16.75-$17.
Viavi Solutions (VIAV, $10.70, down $0.06)
VIAV March 10 calls (VIAV170317C00010000, $0.85, down $0.10)
Entry Price: $0.40 (2/8/2017)
Exit Target: $1.20
Stop Target: 70 cents (Stop Limit)
VIAV March 9 calls (VIAV170317C00009000, $1.75, down $0.10)
Entry Price: $0.50 (1/25/2017)
Exit Target: $2.00 (Limit Order on third)
Stop Target: $1.55 (Stop Limit)
Action: Upper support at $10.75-$10.50 has been stretched with Thursday’s low reaching $10.58. Resistance is at $11-$11.25.
Boston Scientific (BSX, $25.36, down $0.05)
BSX March 25 calls (BSX170317C00025000, $1.00, flat)
Entry Price: $0.70 (2/7/2017)
Exit Target: $1.40
Stop Target: 75 cents (Stop Limit)
Action: Support is at $25-$24.75. Resistance is at $25.50-$25.75.
TherapeuticsMD (TXMD, $5.76, down $0.13)
TXMD June 7.50 calls (TXMD170616C00007500, $0.65, flat)
Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Stop Target: None
Action: Shares tested a low of $5.74 yesterday. Support is at $5.75-$5.50. Resistance is at $6.