MomentumOptions.com Pre-Market Update for 3/23/2017

Bulls Weather Storm

8:00am (EST)

Wednesday’s action was encouraging, to say the least, as the bulls held ground while recovering from Tuesday’s pullback. The bears were able to push lower lows and controlled some of the action with the indexes finishing mixed. However, the VIX edged higher to close at it highest level of the month and lower resistance.

The Dow dipped 6 points, or 0.03%, to settle at 20,661. The blue-chips traded in the red for much of the the session with the low reaching 20,578. Support at 20,600-20,550 was split with risk to 20,400-20,350 on a close below the latter. Fresh resistance at 20,750-20,800 held on the late day push to 20,686.

The S&P 500 gained 4 points, or 0.2%, to close at 2,348. The index fell over 7 points to 2,336 shortly after the open with shaky support at 2,340-2,335 holding. Backup help is at 2,325-2,320 on a move below the latter. Near-term and lower resistance at 2,350-2,360 was cleared on the rebound to 2,351 intraday.

The Nasdaq advanced 27 points, or 0.5%, to end at 5,821. Tech showed some weakness during the morning action with the low tapping 5,781 and support at 5,775-5,750 standing strong. The close back above 5,800 was a slightly bullish sign following the late day run to 5,825. Short-term resistance is at 5,825-5,850.

The Russell 2000 slipped a point, or 0.1%, to finish at 1,346. The small-caps reached their peak shortly after the open with the high reaching 1,348. Near-term resistance at 1,350-1,360 was tested but held. The midday fade to 1,335 breeched support at 1,345-1,340 and the 100-day moving average but levels that held into the closing bell.

The S&P 500 Volatility Index ($VIX, 12.81, up 0.34) made a low of 11.99 ahead of Wall Street’s lunch break with newly minted support at 11.50 and the 50-day moving average holding. The reversal and push to 12.81 cleared lower resistance at 12.50-13.50 with the close above this level a slightly bearish signal. The high reached 13.16.

From desk to press, futures look like this: Dow (+8); S&P 500 (+3); Nasdaq 100 (+2).

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 20-3 (87%). 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.

 

Viavi Solutions (VIAV, $10.81, up $0.19)

VIAV April 11 calls (VIAV170421C00011000, $0.38, up $0.04)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -10%
Stop Target: None

VIAV June 11 calls (VIAV170616C00011000, $0.75, up $0.05)

Entry Price: $0.40 (3/15/2017)
Exit Target: $1.20
Return: 88%
Stop Target: 60 cents (Stop Limit)

Action: Shares traded to a high of $10.85 yesterday. Resistance is at $10.75-$11. Support is at $10.50-$10.25.

 

Starbucks (SBUX, $55.89, up $0.35)

April 52.50 puts (SBUX170421P00052500, $0.12, down $0.03)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -70%
Stop Target: None

Action: Resistance is at $56-$56.50 with Wednesday’s peak reaching $56.04. Support is at $55.50-$55.

 

Amicus Therapeutics (FOLD, $7.07, up $0.25)

FOLD April 8 calls (FOLD170421C00008000, $0.20, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -67%
Stop Target: None

Action: Resistance is at $7.25 with shares reaching a high of $7.10. Support is at $6.75-$6.50.

 

Tower Semiconductor (TSEM, $22.96, up $0.24)

TSEM April 24 calls (TSEM170421C00024000, $0.30, up $0.05)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -54%
Stop Target: None

Action: Resistance is at $23-$23.25. Support is at $22.50-$22.25.

 

Flex (FLEX, $16.61, up $0.24)

FLEX April 17 calls (FLEX170421C00017000, $0.20, up $0.05)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -43%
Stop Target: None

Action: Resistance is at $16.50-$16.75. Support is at $16.25-$16.