Pre-Market Update for 2/23/2017

Dow Extends Win Streak

8:00am (EST)

The market may have been a little sluggish on Wednesday but it didn’t stop the blue-chips from their ninth-straight winning session. While the other major indexes suffered small pullbacks, the overall trend remains bullish on the soft backtest to rising support. With month end approaching, and a hot track record of 17-3 for both newsletters, it has been smooth sailing. However, we still need to be cautious on opening bullish positions as the upside could come to a crawl if volatility picks back up.

The Dow added 32 points, or 0.2%, to close at 20,775. The blue-chips dipped to a low of 20,692 on the open with support at 20,600-20,550 holding. Lower resistance and bluer-sky territory remains at 20,800-21,000 following the rebound to 20,781 and another all-time intraday high.

The S&P 500 a little over 2 points, or 0.1%, to finish at 2,363. The index traded in negative territory throughout the session with the low reaching 2,358. Rising support is holding at 2,350-2,325 with a close below 2,300 likely signaling a short-term top. Resistance remains at 2,375-2,400.

The Nasdaq gave back 5 points, or 0.1%, to settle at 5,860. Tech also traded in southern territory throughout the session with the low reaching 5,848. Fresh support is at 5,850-5,825 with backup at 5,800-5,750. Near-term resistance is at 5,875-5,900.

The Russell 2000 declined 6 points, or 0.5%, to end just below 1,403. The small-caps kissed a low of 1,401 during the second half of action with the first wave of support at 1,405-1,400 getting stretched. Backup help is at 1,390-1,385 on a move back below the latter. Resistance at 1,415-1,425.

The S&P 500 Volatility Index ($VIX, 11.74, up 0.17) closed higher for the second-straight session with the high reaching 12.07. However, it was the fourth-straight lower high with lower resistance at 12.50-13.50 holding. This remains a bullish sign. Support remains at 11-10.50. Yesterday’s low checked-in at 11.44.

I could have a New Trade, or two, shortly after this morning’s open so stay close to your email inboxes.

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


Momentum Options Play List

Closed Momentum Options Trades for 2017: 13-2 (87%). 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.


3D Systems (DDD, $16.83, down $0.41)

March 18 calls (DDD170317C00018000, $0.47, down $0.12)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: 4%
Stop Target: None

Action: Support is at $17-$16.50. Near-term resistance at $17.50-$17.75 with a close above the latter a bullish development on a multi-month breakout.


Jabil Circuit (JBL, $26.29, up $0.09)

JBL March 26 calls (JBL170317C00026000, $1.05, flat)

Entry Price: $0.65 (2/13/2017)
Exit Target: $1.30
Return: 62%
Stop Target: 80 cents (Stop Limit)

Action: Shares traded to a fresh 52-week high of $26.31 yesterday. Rising resistance is at $26.50-$26.75. Near-term support is at $25.75-$25.50 on a move below $26.


Flex (FLEX, $16.76, down $0.03)

FLEX April 17 calls (FLEX170421C00017000, $0.45, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: 29%
Stop Target: None

FLEX March 16 calls (FLEX170317C00016000, $0.85, down $0.05)

Entry Price: $0.40 (2/10/2017)
Exit Target: $1.10 (closed half at $0.80 0n 2/22/2017)
Return: 106%
Stop Target: 70 cents (Stop Limit)

Action: Wednesday’s low reached $16.62. Support is at $16.50-$16.25. Resistance is at $17-$17.25.


TherapeuticsMD (TXMD, $5.67, up $0.08)

TXMD June 7.50 calls (TXMD170616C00007500, $0.45, flat)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -40%
Stop Target: None

Action: Shares could make a significant move today as the company announces earnings ahead of the open. Analysts are expecting a loss of 12 cents a share on revenue of $5.9 million. The losses have come in slightly higher than expectations over the past 3 quarters by a penny or two so a revenue beat is more essential to likely please analysts.

I’m expecting this morning’s conference call with the suit-and-ties will shed some light on the company’s pipeline of drugs. There are a couple of promising therapeutics in clinical trials that could bring in huge revenues for the company if things go well.

Resistance is at $6. Support is at $5.50-$5.40 with additional help at $5.25-$5.