Mid-Market Update for 2/23/2017

Trouble in the Transports/ Profit Alert (FLEX)

2:15pm (EST)

The bulls are trying to push higher highs with the blue-chips leading the way. However, other sectors like Tech and the Transports are in the red and this has led to a mixed session. Although it’s not a major issue, I often talk about how the Dow and the Transports tend to trade in tandem.

The Dow Jones Transportation Average ($TRAN, 9,350, down 98) are down 1% and have pulled back off the 9,500 level from last week. As you can see from the chart below, this area served as resistance in early December and again in late January. The 50-day moving average is starting to level out following a strong uptrend since early November with near-term support at 9,300-9,250.

We will have to see how this development plays out ahead of the weekend and into next week. For the moment, continued weakness, or choppiness, could be in store over the near-term. The fact the blue-chips are making higher highs is encouraging as the two indicators can also switch in leading the market higher, or lower.

The Dow is up 35 points to 20,811 while the S&P 500 is higher by a point to 2,364. The Nasdaq is down 26 points to 5,834 and the Russell 2000 is off 10 points to 1,393. The VIX is at 11.78.

I have updated our current trades, including a Profit Alert for one of our FLEX trades, so let’s go check the action.


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, $16.56, down $0.27)

March 18 calls (DDD170317C00018000, $0.40, down $0.07)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: -11%
Stop Target: None

Action: Support is at $17-$16.50. Near-term resistance at $17.50-$17.75.


Jabil Circuit (JBL, $26.20, down $0.09)

JBL March 26 calls (JBL170317C00026000, $0.95, down $0.10)

Entry Price: $0.65 (2/13/2017)
Exit Target: $1.30
Return: 46%
Stop Target: 80 cents (Stop Limit)

Action: Resistance is at $26.50-$26.75. Near-term support is at $25.75-$25.50 on a move below $26.


Flex (FLEX, $16.67, down $0.09)

FLEX April 17 calls (FLEX170421C00017000, $0.40, down $0.05)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: 14%
Stop Target: None

FLEX March 16 calls (FLEX170317C00016000, $0.70, down $0.15)

Entry Price: $0.40 (2/10/2017)
Exit Target: $1.10 (closed half at $0.80 0n 2/22/2017)
Return: 88%
Stop Target: 70 cents (Stop Limit)

Action: The Stop Limit on the March 16 calls has tripped on today’s pullback to $16.55.

Support is at $16.50-$16.25. Resistance is at $17-$17.25.


TherapeuticsMD (TXMD, $5.72, up $0.05)

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

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