MomentumOptions.com Pre-Market Update for 3/9/2017

Tech Holds Up in Mixed Session/ Trade Alert (DDD)

8:00am (EST)

The selling pressure got slightly worse into Wednesday’s close with the major indexes going out near session lows. Tech held positive territory with the other indexes pulling back while holding near-term support. Today’s action could be more of the same as Wall Street awaits tomorrow’s jobs numbers due out before the opening bell.

The Dow dropped 69 points, or 0.3%, to end at 20,855. The blue-chips opened higher but stalled at 20,951 and resistance at 21,000-21,200. The backtest to 20,835 held lower support at 20,900-20,800. Backup help is at 20,600-20,550 on a move below the latter. The lower highs and lower lows throughout the week are a slight concern.

The S&P 500 slipped 5 points, or 0.2%, to finish just under 2,363. The index made a 5-point run to 2,373 but easily failed resistance at 2,380-2,385. Fresh support at 2,260-2,250 held on the fade to 2,361. A close below the latter would be a bearish development.

The Nasdaq added 3 points, or 0.1%, to settle at 5,837. Tech held positive territory throughout the session with the high reaching 5,860. Lowered resistance at 5,850-5,875 held and a level I would like to see cleared ahead of the weekend. Support remains at 5,825-5,800 and levels that have since mid-February.

The Russell 2000 gave back nearly 9 points, or 0.6%, to close at 1,366. The small-caps made a run to 1,381 with fresh resistance at 1,385-1,390 easily holding. Fresh support at 1,360 held by a nickel following the late day dip to 1,365. However, it was the 2nd-straight close below the 50-day moving average.

The S&P 500 Volatility Index ($VIX, 11.86, up 0.41) traded down to 11.09 shortly after the opening bell with upper support at 11-10.50 holding for the 3rd-straight session. The close above 11.50 was a yellow light. Resistance is at 12.50-13.50.

I have a Trade Alert for DDD this morning.

From desk to press, futures look like this: Dow (-5); 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, $13.22, up $0.17)

AMD April 14 calls (AMD170421C00014000, $0.82, up $0.02)

Entry Price: $0.90 (3/7/2017)
Exit Target: $1.80
Return: -9%
Stop Target: 45 cents

Action: Resistance is at $13.50-$13.75 with yesterday’s high tapping $13.55. Support is at $13-$12.75.

 

Amicus Therapeutics (FOLD, $7.21, up $0.20)

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: Wednesday’s peak reached $7.39. Resistance is at $7.50. Short-term support is at $7-$6.75.

 

Tower Semiconductor (TSEM, $23.18, down $0.10)

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 low of $23.11 yesterday. Support is at $23-$22.75. Resistance is at $23.50-$23.75.

 

Vuzix (VUZI, $7.00, flat)

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, $14.54, down $0.11)

March 18 calls (DDD170317C00018000, $0.02, down $0.03)

Entry Price: $0.45 (2/22/2017)
Exit Target: $1.00
Return: -96%
Stop Target: None

Action: Close the trade on this morning’s open.

 

Flex (FLEX, $16.39, down $0.11)

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, $6.69, up $0.24)

TXMD June 7.50 calls (TXMD170616C00007500, $0.95, up $0.15)

Entry Price: $0.75 (1/18/2017)
Exit Target: $1.50
Return: 27%
Stop Target: None

Action: Resistance is at $6.75-$7 with Wednesday’s high reaching $6.77. Support is at $6.50-$6.25.