Pre-Market Update for 3/2/2017

Wall Street in Disbelief

8:00am (EST)

One of the top ten commandments when it comes to trading is never short a dull market – or one making fresh highs. Although the Dow’s recent win streak of 12-straight was snapped, the bulls rebounded big-time on Wednesday following the slight pullback on Tuesday. It remains to be seen if this was a blow-off the top type of rally, with a backtest to come, or simply another strong sign a beautiful economic recovery has already begun.

The Dow zoomed 303 points, or 1.5%, to settle at 21,115. The blue-chips traded to an all-time high of 21,169 intraday and easily cleared resistance at 20,900-21,000. I mentioned a close above the latter could lead to a near-term run to 21,200-21,250. Rising support is at 21,000-20,800.

The S&P 500 surged 32 points, or 1.4%, to end at 2,395. The index opened at 2,380 and above lower resistance at 2,375-2,400. The intraday record high cleared the latter by nearly a point with fresh hurdles at 2,420-2,425. Support has move up to 2,375-2,350.

The Nasdaq jumped 78 points, or 1.4%, to finish at 5,904. Tech opened at 5,874 and a point below upper resistance at 5,850-5,875. It was a clear signal a move past 5,900 was coming with the lifetime high tapping 5,911. Fresh resistance is at 5,950-5,975 with a shot at 6,000 still in the mix. Support has moved up to 5,850-5,825.

The Russell 2000 soared nearly 27 points, or 1.9%, to close at 1,413. The small-caps made a steady climb to an all-time high of 1,414 ahead of the closing bell to clear prior resistance at 1,405-1,410. I mentioned a move above the 1,410 would get 1,415-1,425 in the mix with a close above the latter leading to 1,440-1,450. Rising support is at 1,400-1,390.

The S&P 500 Volatility Index ($VIX, 12.58, down 0.38) traded in negative territory throughout the session with the low reaching 11.78. The 3% pullback was somewhat surprising given the huge market move with near-term support at 11.50 holding. Resistance remains at 12.50-13.50.

I could have another New Trade, or two, this morning so stay close to your email inboxes.

From desk to press, futures look like this: Dow (-4); S&P 500 (-3); Nasdaq 100 (-6).


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.


Tower Semiconductor (TSEM, $23.42, up $0.47)

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

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: 0%
Stop Target: None

Action: Set an Exit Target at $1.30. There is no Stop Target.

Fresh resistance is at $23.50-$23.75 with yesterday’s 52-high reaching $23.49. Support is at $23.25-$23.


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: Shares stormed to a high of $7 on Wednesday. Fresh resistance is at $7-$7.25. Support has moved up to $6.50-$6.25.


3D Systems (DDD, $15.09, down $0.11)

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. Yesterday’s low tapped $14.94. Near-term resistance is at $15.50-$15.75.


Flex (FLEX, $16.70, up $0.21)

FLEX April 17 calls (FLEX170421C00017000, $0.35, up $0.05)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: 0%
Stop Target: None

Action: Resistance is at $16.75-$17 and the 52-week peak at $16.89. Wednesday’s high reached $16.80. Support is at $16.50-$16.25.


TherapeuticsMD (TXMD, $6.51, up $0.23)

TXMD June 7.50 calls (TXMD170616C00007500, $0.80, up $0.05)

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

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