Pre-Market Update for 3/7/2017

Transports Slack

8:00am (EST)

The bulls tried to rebound throughout Monday’s session but fell shy of positive territory as the Airline stocks put a lid on the Transportation sector. The Dow Jones Transportation Average ($TRAN, 9,420, down 71) was down more than 1% intraday but managed to hold key support into the close. The weakness in the airlines stocks attributed to the pullback after Delta Air Lines (DAL, $48.85, down $1.28) cut it current quarter numbers. I mentioned the Transports would be an important sector to watch this week along with the 9,300-9,275 level on continued weakness.

The Dow fell 51 points, or 0.2%, to settle at 20,954. The blue-chips traded in negative territory throughout the session with the low reaching 20,912. Support at 21,000-20,800 was split with a close below the latter likely leading to 20,600-20,550. Resistance remains at 21,200-21,250.

The S&P 500 declined 7 points, or 0.3%, to close at 2,375. The index tested a low of 2,367 during the first half of action with lower support at 2,375-2,370 getting breeched. Additional help is at 2,260-2,250 on a close below the latter. Resistance remains at 2,400-2,425.

The Nasdaq dropped 21 points, or 0.4%, to end at 5,849. Tech tumbled to a low of 5,827 shortly after the open with lower support at 5,850-5,825 holding but upper support failing by a point. We are still watching the 5,800 level for a possible warning sign to short. Near-term resistance is at 5,875-5,900.

The Russell 2000 slumped nearly 10 points, or 0.7%, to finish at 1,384. The small-caps bottomed out at 1,378 while holding backup support at 1,375-1,370. The close below 1,385 was slightly bearish and a level the bulls need to hold throughout the week. Resistance is at 1,400-1,405.

The S&P 500 Volatility Index ($VIX, 11.24, up 0.28) stayed elevated throughout the session with the bears pushing a high of 11.72. The bulls held the 11.50 level along with resistance at 12.50-13.50. Support remains at 11-10.50.

I hope to add a New Trade this morning on a stock that has experienced incredible volatility over the last week after making a fresh 52-week peak. If you don’t hear from be within the opening hour, we will wait until the midday update to take possible action.

From desk to press, futures look like this: Dow (-26); S&P 500 (-4); Nasdaq 100 (-9); Russell (-3).


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, $7.69, down $0.10)

FOLD April 8 calls (FOLD170421C00008000, $0.60, down $0.05)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: 0%
Stop Target: None

Action: Support is at $7.50-$7.25 with yesterday’s low reaching $7.47. Resistance is at $7.75-$8.


Tower Semiconductor (TSEM, $23.21, up $0.11)

TSEM April 24 calls (TSEM170421C00024000, $0.55, flat)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -15%
Stop Target: None

Action: Shares traded to a high of $23.26 on Monday. Resistance at $23.25-$23.50. Support is at $23-$22.50.


Vuzix (VUZI, $7.20, down $0.15)

VUZI April 7.50 calls (VUZI170421C00007500, $0.55, down $0.10)

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

Action: Monday’s low tapped $6.90. Support is at $7-$6.75. Resistance is at $7.50-$7.75.


3D Systems (DDD, $14.64, up $0.11)

March 18 calls (DDD170317C00018000, $0.05, flat)

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

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


Flex (FLEX, $16.24, down $0.27)

FLEX April 17 calls (FLEX170421C00017000, $0.20, down $0.05)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -43%
Stop Target: None

Action: Support is at $16.25-$16 following Monday’s backtest to $16.05. Resistance is at $16.50.


TherapeuticsMD (TXMD, $6.48, down $0.43)

TXMD June 7.50 calls (TXMD170616C00007500, $0.80, down $0.15)

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

Action: Support is at $6.50-$6.25. Resistance is at $6.75-$7.