Pre-Market Update for 3/1/2017

February Rocked as March Storms In

8:00am (EST)

Although bulls were slowed on Tuesday, they had a fantastic February and are looking to keep their current momentum going. The first half of March is typically bullish and why I have been mentioning the current rally could last until mid-month. However, volatility closed above a key level of resistance and was a slight cause for concern. I mentioned a much wider range could could into play, starting today, and the closes will be important as they will likely determine near-term direction.

The Dow fell 25 points, or 0.1%, to close at 20,812. The blue-chips traded to a morning high of 20,841 following a weak open with resistance at 20,900-21,000 hardly threatened. The midday low tapped 20,781 and the hold above 20,800 looked slightly bullish. Backup help is at 20,600-20,550 on a close below this level.

The S&P 500 gave back a 6-pack, or 0.3%, to settle at 2,363. The index traded underwater throughout the session with the bottom reaching 2,358. Upper support at 2,350-2,325 easily held but will come into play on a close below 2,360. Resistance remains at 2,375-2,400.

The Nasdaq dropped 36 points, or 0.6%, to end at 5,825. Tech also bleed red throughout the session with the low checking in at 5,817. Upper support at 5,825-5,800 held into the closing bell but I have mentioned a move below the latter would be a bearish development. Resistance has moved down to 5,850-5,875.

The Russell 2000 tumbled 21 points, or 1.5%, to finish at 1,386. The small-caps held lower support at 1,390-1,385 but went out just off the session low. I have talked about risk to 1,375-1,370 on a move below the latter with stretch to 1,360. Resistance is now at 1,395-1,400.

The S&P 500 Volatility Index ($VIX, 12.92, up 0.83) jumped 7% after peaking at 12.96 late in the session. The close above lower resistance at 12.50-13.50 needs to be respected with a trip above the latter representing a bearish development. The bulls will be working on recovering the 11.50 level today with additional support at 11-10.50.

Futures were higher throughout the night following President Trump’s address to congress and the nation last night. Stay close to you email inboxes in case I spot an opportunity to go long – or short. I could have up to 2-3 trades over the next couple of days.

From desk to press, futures look like this: Dow (+52); S&P 500 (+7); Nasdaq 100 (+13).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 16-2 (89%). 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.


Vuzix (VUZI, $6.45, down $0.20)

VUZI April 7.50 calls (VUZI170421C00007500, $0.40, down $0.10)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: -20%
Stop Target: None

Action: Tuesday’s low touched $6.30. Support is at $6.25-$6. Resistance at $6.50-$6.75.


3D Systems (DDD, $15.20, down $1.74)

March 18 calls (DDD170317C00018000, $0.10, down $0.35)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: -78%
Stop Target: None

Action: Support is at $15-$14.75 with yesterday’s low reaching $14.83. Near-term resistance is at $15.50-$15.75. I would like to see a recovery of the $16 level by Friday. If not, I could close the trade to save the remaining premium.


Flex (FLEX, $16.49, down $0.22)

FLEX April 17 calls (FLEX170421C00017000, $0.30, down $0.10)

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

Action: Tuesday’s low tapped $16.45. Support is at $16.50-$16.25. Resistance is at $16.75-$17.


TherapeuticsMD (TXMD, $6.28, down $0.06)

TXMD June 7.50 calls (TXMD170616C00007500, $0.75, flat)

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

Action: Support is at $6.25-$6. Resistance is at $6.50. I could “piggy-back” this trade on a move above the $6.75 with nearer-term options. If I take action, I will send out a New Trade Alert.