Mid-Market Update for 2/27/2017

Earnings for the Week

12:20pm (EST)

Futures were trading on both sides of the ledger ahead of this morning’s open, indicating a choppy session. The action hasn’t been dramatic as near-term support is holding with the market likely in a wait-and-see mode ahead of President Trump’s speech to Congress on Tuesday night.

Larger price swings could come on Wednesday but I expect the action to remain tight ahead of any news. Updates on ObamaCare and taxes will be the main hot topics of interest along with how fast they might be rolled out. The President is meeting with the insurance companies today in DC so the sector could lead the market higher, or lower this week.

Other areas of interest in my playbook are earnings and gold. We already have one earnings trade in play this week and I won’t likely take another, unless DDD is a winner. In any event, there are some of the stocks I expect to make the biggest moves this week.

After today’s close – Hertz Global Holdings (HTZ), NutriSystem (NTRI), Tenet Healthcare (THC) and Workday (WDAY) will be on the move in after-hours trading.

3D Systems (DDD), Ambarella (AMBR), Domino’s Pizza (DPZ), Salesforce (CRM), and SeaWorld Entertainment (SEAS) will announce earnings on Tuesday.

Wednesday highlights include: Best Buy (BBY), Box (BOX), Monster Beverage (MNST), and Shake Shack (SHAK).

Autodesk (ADSK), Costco Wholesale (COST), (JD), Kroger (KR), Scientific Games (SGMS) and Wingstop (WING) will confess their quarterly results on Thursday.

Big Lots (BIG) reports their numbers ahead of Friday’s open with shares likely making water-cooler chatter on a possible 5%-10% move.

Elsewhere, Gold ($GOLD, $1,264, up $6) closed above the $1,250 level last week and is zeroing-in on its 200-day moving average and resistance at the $1,260-$1,265 area. Continued closes above the latter would be a bullish development with a clear shot at $1,300-$1,325 in the coming weeks. The 50-day moving average is curling higher and the 100-day moving average is starting to flatten out.

Turning to the market, the Dow is lower by 11 points to 20,810 while the S&P 500 is down a point to 2,366. The Nasdaq is off 2 points to 5,843 and the Russell 2000 is up 5 points to 1,399.

I have updated our current trades along with the parameters for the AMD and VUZI positions. I could have another New Trade ahead of the close so stay close to your email inboxes in case I take additional action.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 15-2 (88%). 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 a Trade Alert outside of these time frames.


Advanced Micro Devices (AMD, $15.11, up $0.99)

AMD April 16 calls (AMD170421C00016000, $1.00, up $0.27)

Entry Price: $0.85 (2/27/2017)
Exit Target: $1.70
Return: 18%
Stop Target: None

Action: Set an Exit Target at $1. There is no Stop Target.

Near-term resistance is at $15-$15.25. Rising support is at $14.50-$14.25.


Vuzix (VUZI, $6.43, up $0.12)

VUZI April 7.50 calls (VUZI170421C00007500, $0.50, up $0.10)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: 0%
Stop Target: None

Action: Set an Exit Target at $1. There is no Stop Target.

Shares have cleared their 50-day moving average today with fresh resistance at $6.50-$6.75. Support is at $6.25.


3D Systems (DDD, $16.84, up $0.35)

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

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

Action: Support is at $16.50-$16.25. Near-term resistance at $16.75-$17.


Flex (FLEX, $16.68, down $0.05)

FLEX April 17 calls (FLEX170421C00017000, $0.40, flat)

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

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


TherapeuticsMD (TXMD, $6.05, up $0.21)

TXMD June 7.50 calls (TXMD170616C00007500, $0.70, up $0.10)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: -7%
Stop Target: None

Action: Resistance is at $6. Support is at $5.50-$5.40.