Pre-Market Update for 3/14/2017

Sloppy Session Slightly Bullish

8:00am (EST)

The market continued its choppy behavior to start the week with the bulls prevailing by the closing bell. The blue-chips were the weakest link but volatility stayed subdued and closed below a key level. The talking heads are expecting a sell-the-news event once Wednesday’s Fed speak is released but the cards are showing a possible different picture.

The Dow slipped 31 points, or 0.1%, to close at 20,881. The blue-chips traded to a high of 20,926 on the open but failed Friday’s peak of 20,940 and resistance at 21,000-21,200. Support at 20,800-20,750 held following the backtest to 20,845. It was a higher low than Friday’s trip to 20,827 with the index is still giving a neutral reading.

The S&P 500 added a point, or 0.04%, to end at 2,373. The index made a push to 2,374 at the start of trading but failed lower resistance at 2,375-2,380. The low of 2,368 shortly afterwards held support at 2,260-2,250. A move above or below the aforementioned zones should provide a good clue on how the next major trend unfolds.

The Nasdaq climbed 14 points, or 0.2%, to finish at 5,875. Tech was slightly weak on the opening scuffle with the low reaching 5,860. Support at 5,825-5,800 easily held. The 1-point loss was hardly noticed as the index tested higher highs afterwards while peaking at 5,877. The close above upper resistance at 5,850-5,875 was a bullish signal and gets 5,900-5,925 and fresh all-time highs back in play.

The Russell 2000 gained 5 points, or 0.4%, to settle at 1,370. The small-caps held positive territory for 99% of Monday’s session after opening lower and falling a fifth-point to 1,365. Rising support at 1,365-1,360 held and was followed by a run to 1,373. Upper resistance at 1,370-1,375 and the 50-day moving average stood tall with a close above the latter being a bullish development.

The S&P 500 Volatility Index ($VIX, 11.35, down 0.31) reached a peak of 12.23 after opening higher at 12.16. Lower resistance at 12.50-13.50 held for the 7th-straight session. The intraday low tapped 11.29 and the close back below the 11.50 level was a good sign. Support remains at 11-10.50.

From desk to press, futures look like this: Dow (-15); S&P 500 (-1); Nasdaq 100 (-1).


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.


Starbucks (SBUX, $54.63, up $0.10)

April 52.50 puts (SBUX170421P00052500, $0.37, down $0.03)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -8%
Stop Target: None

Action: Near-term resistance is at $55-$55.50. Monday’s high reached $54.88. Support is at $54-$53.50.


Advanced Micro Devices (AMD, $14.28, up $0.37)

AMD April 14 calls (AMD170421C00014000, $1.25, up $0.20)

Entry Price: $0.90 (3/7/2017)
Exit Target: $1.80 (closed half at $1.40 on 3/13/2017)
Return: 47%
Stop Target: $1.15 (Stop Limit)

Action: Shares traded to a high of $14.68 yesterday but failed holding resistance at $14.50-$14.75. Support is at $14.25-$14.


Amicus Therapeutics (FOLD, $7.25, down $0.30)

FOLD April 8 calls (FOLD170421C00008000, $0.35, down $0.10)

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

Action: Support is at $7.25-$7 with Monday’s low reaching $7.23. Resistance is at $7.50-$7.75.


Tower Semiconductor (TSEM, $23.00, down $0.06)

TSEM April 24 calls (TSEM170421C00024000, $0.45, flat)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -31%
Stop Target: None

Action: Resistance is at $23.25. Support is at $22.75-$22.50.


Vuzix (VUZI, $7.55, up $0.20)

VUZI April 7.50 calls (VUZI170421C00007500, $0.70, up $0.10)

Entry Price: $0.50 (2/27/2017)
Exit Target: $1.00
Return: 40%
Stop Target: None

Action: Shares traded up to $7.60 and the close above lower resistance at $7.50-$7.75 was a bullish signal. Support remains at $7.25-$7.


Flex (FLEX, $16.63, down $0.03)

FLEX April 17 calls (FLEX170421C00017000, $0.25, down $0.02)

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

Action: Near-term support is at $16.25-$16 with yesterday’s low tapping $16.57. Resistance is at $16.75-$17.


TherapeuticsMD (TXMD, $6.76, up $0.09)

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.