Pre-Market Update for 3/15/2017

VIX Holds 12.50

8:00am (EST)

It was the Energy sector that weight on Tuesday’s action as oil continues to struggle with 3-month lows. The wait-and-see results from the Fed has also kept a lower trending trading range in play but the action could heat up in the afternoon once the news concerning interest rates is released.

The Dow dropped 44 points, or 0.2%, to end at 20,837. The blue-chips traded in negative territory throughout the session with the low reaching 20,786. Support at 20,800-20,750 held as did last week’s low of 20,777. Resistance remains at 21,000-21,200.

The S&P 500 fell 8 points, or 0.3%, to finish at 2,365. The index also stayed in the red throughout Tuesday’s action with the low checking in at 2,358. Upper support at 2,260-2,250 was breeched but held into the closing bell. Last Thursday’s low tapped 2,354. Resistance is at 2,375-2,380 with a close above the latter being a bullish development.

The Nasdaq gave back 19 points, or 0.3%, to settle at 5,856. Tech tested a bottom of 5,831 shortly after the open with support at 5,825-5,800 holding for the 7th-straight session. Resistance is at 5,875-5,900 and the all-time high of 5,911.

The Russell 2000 tumbled nearly 8 points, or 0.6%, to close at 1,362. The small-caps were also weak throughput the session while testing a low of 1,353. Lower support at 1,360-1,350 held with a move below the latter being a bearish development. Resistance remains at 1,370-1,375 and the 50-day moving average. The next 1% move should give us a better clue on the next near-term trend.

The S&P 500 Volatility Index ($VIX, 12.30, up 0.95) made a slight dip to 11.28 at the start of trading with support at 11-10.50 holding. The run to 12.54 afterwards breeched lower resistance at 12.50-13.50 before holding in the close.

I could have New Trades at some point today after closing the two from yesterday. The Fed news is due out at 2pm and the Mid-Market update should be ready by 1pm. In the meantime, stay locked-and-loaded after the opening bell in case I take action.

From desk to press, futures look like this: Dow (+31); S&P 500 (+3); Nasdaq 100 (+6).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 18-3 (86%). 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, $54.27, down $0.36)

April 52.50 puts (SBUX170421P00052500, $0.40, up $0.03)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: 0%
Stop Target: None

Action: Shares kissed a low of $54.19 yesterday and were below this level to $54.12 in after-hours trading. Support is at $54-$53.50. Near-term resistance has moved down to $54.75-$55.


Amicus Therapeutics (FOLD, $7.03, down $0.22)

FOLD April 8 calls (FOLD170421C00008000, $0.30, down $0.05)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -50%
Stop Target: None

Action: Support is at $7-$6.75. Tuesday’s low tapped $6.97. Resistance is at $7.25-$7.50.


Tower Semiconductor (TSEM, $22.48, down $0.52)

TSEM April 24 calls (TSEM170421C00024000, $0.25, down $0.20)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -62%
Stop Target: None

Action: Fresh support is at $22.25-$22. Resistance is at $22.75-$23.


Flex (FLEX, $16.79, up $0.16)

FLEX April 17 calls (FLEX170421C00017000, $0.33, up $0.08)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -6%
Stop Target: None

Action: The close above lower resistance at $16.75-$17 was a bullish signal. Support has moved up $16.25-$16.


TherapeuticsMD (TXMD, $6.74, down $0.02)

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.