MomentumOptions.com Pre-Market Update for 3/28/2017

Dow on Eight Session Slide

8:00am (EST)

Monday was a mixed session with the good, bad, and ugly showing. The ugly was volatility spiking past another layer of resistance with the bad being another lower low on the blue-chips. The good news was the losses in the broader market were offset by gains in Tech and the small-caps.

The Dow fell 45 points, or 0.2%, to finish at 20,551. The blue-chips traded in negative territory throughout Monday’s action with the low reaching 20,412. Fresh support at 20,450-20,400 and the 50-day moving average held with risk to 20,200-20,000 on a close below the latter. Short-term resistance has moved down to 20,600 followed by 20,750-20,800.

The S&P 500 declined 2 points, or 0.1%, to settle at 2,342. The index also stayed underwater throughout the session while bottoming at 2,322. Backup support at 2,330-2,325 and the 50-day moving average was breeched but held into the closing bell. Resistance remains at 2,350-2,360.

The Nasdaq added 11 points, or 0.2%, to close at 5,840. Tech’s low shortly after the open tapped 5,769 before a recovery into positive territory by noonish. Backup support at 5,775-5,750 and the 50-day moving average held. The high into the final minutes of action reached 5,849 with upper resistance at 5,825-5,850 holding by a point.

The Russell 2000 climbed 2 points, or 0.2%, to end at 1,357. The small-caps danced with support at 1,340-1,335 and breeched last week’s latter low by a fifth-point. There is risk to 1,325-1,310 on a move below this level. The rebound to 1,359 fell a point shy of upper resistance at 1,350-1,360. A close above the latter would be a bullish sign for a possible run to 1,370-1,375 and test of the 50-day moving average.

The S&P 500 Volatility Index ($VIX, 12.50, down 0.46) zoomed to a high 15.11 and a level not seen since mid-November. Upper resistance at 13.50-15 and the 200-day moving average was stretched but held. The late day low touched 12.48 and the close back below upper support at 12.50-11.50 was slightly bullish.

I have update the parameters of our latest TXMD and VIAV trades.

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

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 21-3 (88%). 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.

 

TherapeuticsMD (TXMD, $6.80 up $0.03)

TXMD May 7.50 calls (TXMD170519C00007500, $0.80, up $0.10)

Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 0%
Stop Target: None

Action: Set an Exit Target at $1.60. There is no Stop Target.

Resistance is at $7-$7.25 with Monday’s high reaching $7.10. Support is at $6.75-$6.50.

 

Viavi Solutions (VIAV, $10.90, up $0.18)

VIAV May 12 calls (VIAV170519C00012000, $0.31, up $0.06)

Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: 7%
Stop Target: None

VIAV April 11 calls (VIAV170421C00011000, $0.38, up $0.07)

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

Action: Set an Exit Target at 60 cents on the May 12 calls. There is no Stop Target.

Rising resistance is at $11-$11.25 following yesterday’s run to a 52-week peak of $11.03. Support is at $10.75-$10.50.

 

Starbucks (SBUX, $57.23, up $0.42)

April 52.50 puts (SBUX170421P00052500, $0.05, down $0.02)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -88%
Stop Target: None

Action: Monday’s high reached $57.45. Fresh resistance is at $57.25-$57.50. Support is at $56.75-$56.50.

 

Amicus Therapeutics (FOLD, $7.50, up $0.26)

FOLD April 8 calls (FOLD170421C00008000, $0.30, up $0.10)

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

Action: Fresh resistance is at $7.75-$8 with Monday’s high tapping $7.61. Rising support is at $7.25-$7.

 

Tower Semiconductor (TSEM, $23.06, up $0.01)

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: Resistance is at $23.25-$23.50. Support is at $22.75-$22.50 if $23 fails to hold. Yesterday’s bottom reached $22.55.

 

Flex (FLEX, $16.62, down $0.01)

FLEX April 17 calls (FLEX170421C00017000, $0.25, flat)

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

Action: Support is at $16.50-$16.25. Resistance is at $16.75-$17.