Pre-Market Update for 3/8/2017

VIX Holds 11.50

8:00am (EST)

The market suffered its first back-to-back losses for the first time since January following Tuesday’s choppy session. The damage was once again limited as volatility stayed below a key level of support. Wall Street will be looking to see how overseas markets fair after their closes for hints as to what the European Central Bank might be doing Thursday morning.

The Dow dipped 29 points, or 0.1%, to close at 20,924. The blue-chips made a brief trip into positive territory shortly after the open with the high reaching 20,970. Lowered resistance at 21,000-21,200 held with the rest of the session spent underwater. The low tapped 20,901 with rising support at 20,900-20,800 holding. There is risk to 20,600-20,550 on a move below the latter.

The S&P 500 fell 7 points, or 0.3%, to end at 2,368. The index traded in negative territory throughput the day with the low reaching 2,365. The close below lower support at 2,375-2,370 was a slightly bearish development and gets 2,260-2,250 in play. Near-term resistance has moved down to 2,380-2,385.

The Nasdaq declined 15 points, or 0.3%, to finish just under 5,834. Tech made a push to 5,859 during the morning action with lower resistance at 5,875-5,900 easily holding. The fade to 5,826 ahead of the closing bell held support at 5,825-5,800 with a close below the latter being a bearish development.

The Russell 2000 fell 9 points, or 0.7%, to just below 1,375. The small-caps stayed underwater throughout Tuesday’s action with the bears pushing a low of 1,374.20. Upper support at 1,375-1,370 was slightly breeched with risk to 1,360 on a close below the latter. Resistance has moved down to 1,385-1,390.

The S&P 500 Volatility Index ($VIX, 11.45, up 0.21) reached a high of 11.58 after the open but held the 11.50 level and lower resistance at 12.50-13.50. Upper support at 11-10.50 was tested following the late day low of 11.04. This VIX is still giving a slightly bullish signal.

From desk to press, futures look like this: Dow (+9); S&P 500 (+1); Nasdaq 100 (+2).


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, $13.05, up $0.01)

AMD April 14 calls (AMD170421C00014000, $0.80, down $0.01)

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

Action: Set an Exit Target at $1.80. Set a Stop Target at 45 cents.

Near-term support is at $13-$12.75. Resistance is at $13.25-$13.50.


Amicus Therapeutics (FOLD, $7.01, down $0.68)

FOLD April 8 calls (FOLD170421C00008000, $0.35, down $0.25)

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

Action: Short-term support is at $7-$6.75. Tuesday’s low reached $6.99. Resistance is at $7.50.


Tower Semiconductor (TSEM, $23.28, up $0.07)

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 $23.39 yesterday. Fresh resistance is at $23.50-$23.75. Rising support is at $23-$22.75.


Vuzix (VUZI, $7.00, down $0.20)

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: Support is at $7-$6.75 with yesterday’s low reaching $6.95. Lowered resistance is at $7.25-$7.30.


3D Systems (DDD, $14.65, up $0.01)

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. I will likely close this trade by this Friday as these options expire next Friday.


Flex (FLEX, $16.50, up $0.23)

FLEX April 17 calls (FLEX170421C00017000, $0.25, up $0.05)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -29%
Stop Target: None

Action: Shares kissed a high of $16.62 ahead of the closing bell. Fresh resistance is at $16.75-$17. Support is at $16.25-$16.


TherapeuticsMD (TXMD, $6.45, down $0.03)

TXMD June 7.50 calls (TXMD170616C00007500, $0.80, flat)

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

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