Pre-Market Update for 3/3/2017

Fresh Support in Play

8:00am (EST)

Thursday’s pullback was nearly a given following another breakout to all-time highs across the board on Wednesday. Fresh support will try to hold ahead of the weekend and volatility stayed relaxed despite the market’s decline. With earnings season starting to wind down, economic and political news could play more of a role in the market’s direction over the coming weeks.

The Dow declined 112 points, or 0.5%, to end at 21,002. The blue-chips tested a high of 21,129 shortly after the open with resistance and bluer-sky territory at 21,200-21,250 holding. Upper support at 21,000-20,800 held following the late day dip to 20,996.

The S&P 500 tumbled 14 points, or 0.6%, to finish at 2,381. The index opened a point lower at 2,394 and below upper resistance at 2,375-2,400. The late day low tapped 2,380 and represented Wednesday’s open. This was a slightly bullish signal with near-term support at 2,375-2,370 holding. A close below the latter would be a bearish development.

The Nasdaq sank 42 points, or 0.7%, to close at 5,861. Tech opened below the 5,900 level while trading to an intraday low of 5,856. Fresh support at 5,850-5,825 held with the close above the latter also a positive sign. Resistance for today is at 5,875-5,900.

The Russell 2000 stumbled 18 points, or 1.3%, to settle at 1,395. The small-caps started Thursday’s session a half-point lower at 1,413 while going out a half-point off the low. Rising support at 1,400-1,390 was split heading into today’s action with a close above or below these levels likely a bullish or bearish signal for Monday.

The S&P 500 Volatility Index ($VIX, 11.81, down 0.73) kissed a high of 12.71 at the start of Thursday’s scrum with resistance at 12.50-13.50 easily holding. The steady decline to 11.32 into the second half of trading cleared the 11.50 level but failed to hold into the close. Support at 11-10.50 are lower levels of more importance but a close below 11.50 ahead of the weekend would be a bullish clue for next week.
From desk to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx); Russell (xx).


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.


Amicus Therapeutics (FOLD, $7.43, down $0.17)

FOLD April 8 calls (FOLD170421C00008000, $0.55, up $0.03)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -8%
Stop Target: None

Action: Resistance is at $8-$8.25 with yesterday’s high reaching $8.10. Support is at $7.50-$7.25.


Tower Semiconductor (TSEM, $23.26, down $0.16)

TSEM April 24 calls (TSEM170421C00024000, $0.60, down $0.05)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -8%
Stop Target: None

Action: Shares set a fresh 52-week peak at $23.50 shortly after the open with lower resistance at $23.50-$23.75 holding. Support is at $23.25-$23.


Vuzix (VUZI, $6.90, flat)

VUZI April 7.50 calls (VUZI170421C00007500, $0.50, down $0.05)

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

Action: Thursday’s high tapped $7. Resistance is at $7-$7.25. Support is at $6.50-$6.25.


3D Systems (DDD, $14.62, down $0.47)

March 18 calls (DDD170317C00018000, $0.05, down $0.05)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: -89%
Stop Target: None

Action: Fresh support is at $14.50-$14.25. Resistance is at $14.75-$15.


Flex (FLEX, $16.51, down $0.19)

FLEX April 17 calls (FLEX170421C00017000, $0.30, down $0.05)

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

Action: Support is at $16.50-$16.25. Thursday’s low reached $16.37. Resistance is at $16.75-$17.


TherapeuticsMD (TXMD, $6.63, up $0.12)

TXMD June 7.50 calls (TXMD170616C00007500, $0.85, up $0.05)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: 13%
Stop Target: None

Action: Yesterday’s high reached $6.84. Resistance is at $6.75-$7. Rising support is at $6.50-$6.25.