Pre-Market Update for 3/10/2017

Bears Getting Serious

8:00am (EST)

The bears pushed lower lows for the fourth-straight session on Thursday afternoon before the bulls reclaimed control while holding near-term support. The flurry of action ahead of the closing bell could be viewed as both bearish and bullish and a theme for the week. Today’s clues get bigger starting this morning as far as determining if this week’s pullback leads to further damage, or a rebound rally into next week is in store.

The Dow added over 2 points, or 0.01%, to finish at 20,858. The blue-chips traded to a high of 20,900 shortly after the open with resistance at 21,000-21,200 holding. Fresh support at 20,800-20,750 held on the intraday dip to 20,777. There is risk to 20,600-20,550 on a move below the latter.

The S&P 500 climbed nearly 2 points, or 0.1%, to settle at 2,364. The index reached a peak of 2,369 but failed lowered resistance at 2,375-2,380. Support at 2,260-2,250 was split following the backtest to 2,354. I have been warning a close below the latter would be a bearish development and where I could use possible SPY put options to play lower lows.

The Nasdaq gained a point, or 0.02%, to close at 5,838. Tech cleared lower resistance at 5,850-5,875 after making a run to 5,852 but a level that failed to hold. Support at 5,825-5,800 was also split following the late day dip to 5,812. A move below the latter could get a bearish QQQ trade in play.

The Russell 2000 dropped 6 points, or 0.4%, to end at 1,360. The small-caps kissed a high of 1,371 with falling resistance at 1,370-1,375 holding. A close into this zone would be a bullish development for next week. Support at 1,360 held into the closing bell but the sixth-straight lower low at 1,357 gets 1,345-1,340 in the mix.

The S&P 500 Volatility Index ($VIX, 12.30, up 0.44) tested a low of 11.62 with the 11.50 level holding. Support is at 11-10.50 on a close move back below 11.50. Lower resistance at 12.50-13.50 held following the intraday pop to 12.43. The action in the VIX yesterday was neutral and par for the course this week. A close above the latter would be a bad omen for next week.

If the bulls can rebound today, next week could return to a more bullish environment. However, if lower lows are cracked, it could be time to start adding bearish positions to the portfolio.

From desk to press, futures look like this: Dow (+53); S&P 500 (+6); Nasdaq 100 (+13).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 16-3 (84%). 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, $13.33, up $0.11)

AMD April 14 calls (AMD170421C00014000, $0.85, up $0.03)

Entry Price: $0.90 (3/7/2017)
Exit Target: $1.80
Return: -6%
Stop Target: 45 cents

Action: Resistance is at $13.50-$13.75 with Thursday’s high tapping $13.45. Support is at $13-$12.75.


Amicus Therapeutics (FOLD, $7.53, up $0.32)

FOLD April 8 calls (FOLD170421C00008000, $0.45, up $0.10)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -33%
Stop Target: None

Action: Fresh resistance is at $7.75-$8 following yesterday’s high of $760. Short-term support has moved up to $7.25-$7.


Tower Semiconductor (TSEM, $22.95, down $0.23)

TSEM April 24 calls (TSEM170421C00024000, $0.40, down $0.10)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -38%
Stop Target: None

Action: Shares traded to a low of $22.65 on Thursday. Support is at $22.75-$22.50. Resistance is at $23-$23.25.


Vuzix (VUZI, $7.25, up $0.25)

VUZI April 7.50 calls (VUZI170421C00007500, $0.60, up $0.10)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: 20%
Stop Target: None

Action: Resistance is at $7.50 with shares going out at the session high. Support is at $7-$6.75.


Flex (FLEX, $16.50, up $0.11)

FLEX April 17 calls (FLEX170421C00017000, $0.25, up $0.03)

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

Action: Thursday’s high reached $16.53. Resistance is at $16.75-$17. Support is at $16.25-$16.


TherapeuticsMD (TXMD, $6.75, up $0.06)

TXMD June 7.50 calls (TXMD170616C00007500, $0.95, flat)

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

Action: Resistance is at $6.75-$7. Support is at $6.50-$6.25. Shares traded up to $6.86 yesterday.