MomentumOptions.com Pre-Market Update for 2/28/2017

Dow Streak Hits 12-Straight

8:00am (EST)

Despite a sluggish start, the bulls continued their run towards record highs with the Dow and S&P 500 making fresh intraday record peaks while the other major indexes also went out higher. The blue-chips are working on their longest winning streak in 30 years despite volatility rising 6%. Although the VIX stayed slightly elevated, the bulls held key levels of resistance with the bears remaining in limbo.

The Dow gained 15 points, or 0.1%, to finish at 20,837. The blue-chips tested a low of 20,774 on Monday’s open with near-term support at 20,600-20,550 holding for the eight-straight session. The second half run to 20,851 was another all-time high with rising resistance now at 20,900-21,000.

The S&P 500 advanced 2 points, or 0.1%, to close at 2,369. The index sank a 6-pack to 2,361 at the start of trading with support at 2,350-2,325 holding. The intraday rebound past 2,371 set a fresh all-time with lower resistance at 2,375-2,400 still in play.

The Nasdaq added 16 points, or 0.3%, to settle a shade under 5,862. Tech traded down to 5,827 within the first 30 minutes of action with lower support at 5,825-5,800 also holding for the eight-straight session. The bounce of the low reached a peak of 5,861 but fell shy of the record high by a half-dozen points. Resistance remains at 5,875-5,900.

The Russell 2000 soared nearly 13 points, or 0.9%, to end at 1,407. The small-caps slipped 2 points to 1,392 on the opening scuffle with upper support at 1,390-1,385 standing tall. The close split resistance at 1,405-1,410 with additional hurdles at 1,415-1,425 on a move above the latter and lifetime high.

The S&P 500 Volatility Index ($VIX, 12.09, up 0.62) closed just off its intraday peak of 12.14 with lower resistance at 12.50-13.50 easily sticking. Support is at 11-10.50 on a move back below the 11.50 level.

There are numerous trades I like, mostly bullish, that I could have ready after the open. If volatility stays somewhat relaxed, the bulls could run strong into mid-March with slight hiccups on small pullbacks while extending the current trading environment.

From desk to press, futures look like this: Dow (-4); S&P 500 (-2); Nasdaq 100 (-3); Russell (-2).

 

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, $15.20, up $1.08)

AMD April 16 calls (AMD170421C00016000, $1.15, up $0.42)

Entry Price: $0.85 (2/27/2017)
Exit Target: $1.70
Return: 35%
Stop Target: 88 cents (Stop Limit)

Action: Set an initial Stop Limit at 88 cents to start protecting profits.

Shares traded to a fresh 52-week peak of $15.35 yesterday with the call options trading up to $1.21. Near-term resistance is at $15.25-$15.50. Rising support is at $15-$14.75.

Vuzix (VUZI, $6.65, up $0.35)

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: Shares closed above their 50-day moving average after going out at the session high on Monday. Fresh resistance at $6.75-$7. Rising support is at $6.25-$6 on a move back below $6.50.

3D Systems (DDD, $16.94, up $0.45)

March 18 calls (DDD170317C00018000, $0.45, up $0.12)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: 0%
Stop Target: None

Action: Yesterday’s high tapped $17.04. Near-term resistance at $17-$17.25. Support is at $16.75-$16.50.

Earnings are due out this morning and I could have a Trade Alert shortly before, or after, the opening bell, depending on the news.

 

Flex (FLEX, $16.71, down $0.02)

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: Monday’s high point reached $16.78 before the lower close. Support is at $16.50-$16.25. Resistance is at $17-$17.25.

 

TherapeuticsMD (TXMD, $6.34, up $0.50)

TXMD June 7.50 calls (TXMD170616C00007500, $0.75, up $0.15)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: 0%
Stop Target: None

Action: Shares traded up to $6.39 yesterday and the close above $6 was bullish. Fresh resistance is at $6.50. Rising support is at $6.25-$6.