MomentumOptions.com Mid-Market Update for 3/8/2017

Crude Oil Down Another 3%

2:05pm (EST)

Oil is down another 4% today and is trading at $50.93 a barrel. Today’s $2+ dip is pushing prices to the bottom of a $50-$55 ongoing trading range. This shouldn’t come as that big of a surprise as U.S. crude-oil inventories hit a record last week. The rise in imports and lowered refinery activity were clues prices could fall along with domestic production hitting its highest level in more than a year.

Total crude production rose 56,000 barrels last week to over 9 million barrels and represent the largest amount of inventory in more than a year. Holding the $50 level will be an important task for the bulls but a level I expect the bears to crack in the coming weeks. I’m have been adding possible trades to my Watch List so stay ready.

Elsewhere, Gold continues to tumble after failing its 200-day moving average earlier this month. The yellow metal is on a six session slid and is currently at $1,216 an ounce, down $9 today. There is support at the 100-day moving average along with the $1,200 level and the 50-day moving average.

As far as the indexes, trading as remained much of the same with choppy action heading into the final hours of trading. The Dow is down 8 points to 20,916 while the S&P 500 is gaining 2 points to 2,371. The Nasdaq is jumping 23 points to 5,857 and the Russell 2000 is climbing 2 points to 1,376.

I have updated our current trades so let’s go check the tape.

 

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.

 

Advanced Micro Devices (AMD, $13.43, up $0.38)

AMD April 14 calls (AMD170421C00014000, $0.90, up $0.10)

Entry Price: $0.90 (3/7/2017)
Exit Target: $1.80
Return: 0%
Stop Target: 45 cents

Action: Resistance is at $13.50-$13.75. Support has moved up to $13.25-$13.

 

Amicus Therapeutics (FOLD, $7.31, up $0.30)

FOLD April 8 calls (FOLD170421C00008000, $0.35, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -42%
Stop Target: None

Action: Resistance is at $7.50. Short-term support is at $7-$6.75.

 

Tower Semiconductor (TSEM, $23.17, down $0.11)

TSEM April 24 calls (TSEM170421C00024000, $0.50, down $0.05)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -23%
Stop Target: None

Action: Shares traded to a high of $23.39 yesterday. Fresh resistance is at $23.50-$23.75. Rising support is at $23-$22.75.

 

Vuzix (VUZI, $6.95, down $0.05)

VUZI April 7.50 calls (VUZI170421C00007500, $0.50, flat)

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

Action: Support is at $7-$6.75. Resistance is at $7.25-$7.30.

 

3D Systems (DDD, $14.74, up $0.09)

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, $16.35, down $0.15)

FLEX April 17 calls (FLEX170421C00017000, $0.22, down $0.03)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -37%
Stop Target: None

Action: Support is at $16.25-$16. Resistance is at $16.75-$17.

 

TherapeuticsMD (TXMD, $6.76, up $0.31)

TXMD June 7.50 calls (TXMD170616C00007500, $0.90, up $0.10)

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

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