MomentumOptions.com Pre-Market Update for 3/24/2017

Small-Caps Shine in Flat Session

8:00am (EST)

The market traded in positive territory for much of Thursday’s session on hopes the zombies might be able to hammer out a deal on the American Health Care Act. However, the gains faded into the closing bell when it became obvious a vote would not occur on Thursday. In fact, the vote was delayed overnight and will take place today, likely during market hours. With the bears winning the week, the bulls will need some type of good news to make it close.

The Dow gave back 4 points, or 0.02%, to close at 20,656. The blue-chips tested a low of 20,618 on the open with upper support at 20,600-20,550 holding. The midday run to 20,757 held lower resistance at 20,750-20,800. A close above upper resistance, or drop below lower support should shape the next short-term trend.

The S&P 500 declined 2 points, or 0.1%, to end just under 2,346. The index traded to a morning low of 2,342 with upper support at 2,340-2,335 standing tall. The midday rebound to nearly 2,359 fell shy of upper resistance at 2,350-2,360 with a close above the latter a bullish development.

The Nasdaq dipped 4 points, or 0.1%, to finish at 5,817. Tech’s trip to 5,806 at the start of trading held the 5,800 level and near-term support at 5,775-5,750. The push to 5,842 afterwards came close to clearing upper resistance at 5,825-5,850 but both levels failed to hold into the closing bell.

The Russell 2000 added 7 points, or 0.6%, to settle at 1,353. The small-caps slipped 2 points to 1,353 after starting the session slightly lower. Support at 1,345-1,340 and the 100-day moving average easily held. The majority of the session afterwards was spent in positive territory with the peak reaching 1,361. The move above upper resistance at 1,350-1,360 and close back into this zone was a slightly bullish sign.

The S&P 500 Volatility Index ($VIX, 13.12, up 0.31) failed short-term support at 11.50 and the 50-day moving average with the low kissing 12.18 intraday. The high of 13.17 into the closing bell failed resistance at 13.50 with a close above this level a slightly bearish development. The higher high was the 4th-straight for the VIX.

From desk to press, futures look like this: Dow (+63); S&P 500 (+6); Nasdaq 100 (+15).

 

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, $10.78, down $0.03)

VIAV April 11 calls (VIAV170421C00011000, $0.38, flat)

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

VIAV June 11 calls (VIAV170616C00011000, $0.75, flat)

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

Action: Yesterday’s high reached $10.92 before a lower close. Resistance is at $10.75-$11. Support is at $10.50-$10.25.

 

Starbucks (SBUX, $55.85, down $0.04)

April 52.50 puts (SBUX170421P00052500, $0.10, down $0.02)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -75%
Stop Target: None

Action: Resistance is at $56-$56.50 with Thursday’s peak reaching $56.42. Support is at $55.50-$55.

 

Amicus Therapeutics (FOLD, $7.14, up $0.07)

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: Shares traded up to $7.36 yesterday. Resistance is at $7.25. Support is at $6.75-$6.50.

 

Tower Semiconductor (TSEM, $22.91, down $0.05)

TSEM April 24 calls (TSEM170421C00024000, $0.30, flat)

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

Action: Support is at $22.75-$22.50 with Thursday’s low reaching $22.88. Resistance is at $23-$23.25.

 

Flex (FLEX, $16.64, up $0.03)

FLEX April 17 calls (FLEX170421C00017000, $0.25, up $0.05)

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

Action: Shares traded up to $16.80 yesterday. Resistance is at $16.50-$16.75. Support is at $16.25-$16.