Mid-Market Update for 3/1/2017

Fresh Highs Back in Play/ New Trade (TSEM)

2:15pm (EST)

The bulls are once again pushing all-time highs while triggering my near-term fluff targets following a solid performance by President Trump in his speech last night. The optimism has instilled renewed confidence in investors with the slick talking pros still in disbelief. Today’s gains are the biggest of the year and will end one of the longest droughts in history without a 1% move in the Dow and S&P 500.

Economic news has also lifted spirits as personal income rose 0.4% in January, with spending up 0.2%. The ISM manufacturing index rose to a 30-month high of 57.7, up from 56 in January. Meanwhile, construction spending unexpectedly dropped 1% in January, versus expectations for an increase of 0.6%.

With the Biotech sector nearing an upside breakout, one company I wanted to highlight is Amicus Therapeutics (FOLD, $7.50, up $1.01). Shares are up 15% after reporting quarterly results and being mentioned in President Trump’s speech last night. I’m still doing homework but options are available to trade.

The FOLD March 7 calls (FOLD170317C00007000, $0.70, up $0.50) are zooming 250% today on heavy volume and have kissed a high of 85 cents. The FOLD April 8 calls (FOLD170421C00007000, $0.50, up $0.25) are up 100% and would give a bullish trade more time to play out. The 52-week high for FOLD is at $9.83.

The Dow is up 308 points to 21,120 while the S&P 500 is gaining 32 points to 2,396. The Nasdaq is surging 74 points to 5,899 and the Russell 2000 is advancing 27 points to 1,413.

Although, I’m passing on FOLD for the moment, I do have a New Trade I want to get us into so let’s go check the action.


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.

New Trade

Tower Semiconductor (TSEM, $23.34, up $0.39)

Buy to Open TSEM April 24 calls (TSEM170421C00024000, $0.65, up $0.08)

Action: I like these call options at current levels and you can use a Limit Order up to 75 cents to get the best fills. These are the regular TSEM April 24 calls that expire on April 21st, 2017. I will provide the parameters of the trade in tomorrow’s Pre-Market update.


Current Trades

Vuzix (VUZI, $6.95, up $0.50)

VUZI April 7.50 calls (VUZI170421C00007500, $0.55, up $0.15)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: 10%
Stop Target: None

Action: Fresh resistance is at $7-$7.25. Support has moved up to $6.50-$6.25.


3D Systems (DDD, $15.13, down $0.07)

March 18 calls (DDD170317C00018000, $0.10, flat)

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

Action: Support is at $15-$14.75. Near-term resistance is at $15.50-$15.75.


Flex (FLEX, $16.79, up $0.30)

FLEX April 17 calls (FLEX170421C00017000, $0.40, up $0.10)

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

Action: Resistance is at $16.75-$17. Support is at $16.50-$16.25.


TherapeuticsMD (TXMD, $6.45, up $0.17)

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: Resistance is at $6.50-$6.75. Support is at $6.25-$6.