MomentumOptions.com Pre-Market Update for 3/29/2017
Financial Stocks Lead Stampede
8:00am (EST)
The market showed strength across most sectors on Tuesday with the Financial group leading the continued rebound off Monday’s lows. The breathing room for the bulls was much needed following the end of month wakeup call by the bears. Of course, our alarm clock was already set as we prepared for the historical late March weakness. However, we still need to ensure support holds this week before adding continued call options into April.
The Dow jumped 150 points, or 0.7%, to settle at 20,701. The blue-chips fell 30 points on the open to 20,520 with support at 20,450-20,400 and the 50-day moving average holding. Prior resistance at 20,750-20,800 stuck like Chuck on the second half bounce to 20,735.
The S&P 500 soared 17 points, or 0.7%, to close at 2,358. The index slipped 4 points to 2,337 with near-term support at 2,330-2,325 and the 50-day moving average easily holding. Upper resistance at 2,350-2,360 was cleared on the run to 2,363 with a close above the latter a very bullish development, again.
The Nasdaq advanced 34 points, or 0.6%, to end at 5,875. Tech gave back a 12-pack after kissing a low of 5,828 an hour into trading. Shaky support at 5,825-5,800 held with backup at 5,775-5,750 and the 50-day moving average waiting in the wings. The intraday run to 5,888 gets fresh resistance at 5,900-5,925 back in play.
The Russell 2000 rallied 10 points, or 0.7%, to finish at 1,367. The small-caps tested rising support at 1,350-1,345 after trading down to 1,352 shortly after the opening bell. The index went out less than a point off its peak with the close above upper resistance at 1,350-1,360 a very bullish sign. The so-called “smart” buyers will likely rush back in on a move above 1,370-1,375 and the 50-day moving average.
The S&P 500 Volatility Index ($VIX, 11.53, down 0.97) traded in the red for much of Tuesday’s session aside from the morning pop to 12.67. Lower resistance at 13.50-15 and the 200-day moving average held before a slow fade into the close. The late day low reached 11.34 but failed lower support at 12.50-11.50.
From desk to press, futures look like this: Dow (-19); S&P 500 (-1); Nasdaq 100 (+1).
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, $6.99, up $0.19)
TXMD May 7.50 calls (TXMD170519C00007500, $0.85, up $0.05)
Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 6%
Stop Target: None
Action: Resistance is at $7-$7.25. Tuesday’s peak reached $7.06. Support is at $6.75-$6.50.
Viavi Solutions (VIAV, $10.83, down $0.06)
VIAV May 12 calls (VIAV170519C00012000, $0.31, flat)
Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: 7%
Stop Target: None
VIAV April 11 calls (VIAV170421C00011000, $0.38, flat)
Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -10%
Stop Target: None
Action: Resistance is at $11-$11.25. Support is at $10.75-$10.50.
Starbucks (SBUX, $57.39, up $0.16)
April 52.50 puts (SBUX170421P00052500, $0.05, flat)
Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -88%
Stop Target: None
Action: Resistance is at $57.25-$57.50. Support is at $56.75-$56.50.
Amicus Therapeutics (FOLD, $7.27, down $0.23)
FOLD April 8 calls (FOLD170421C00008000, $0.25, down $0.05)
Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -58%
Stop Target: None
Action: Support is at $7.25-$7. Resistance is at $7.75-$8.
Tower Semiconductor (TSEM, $23.12, up $0.06)
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.
Flex (FLEX, $16.68, up $0.06)
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: Resistance is at $16.75-$17. Support is at $16.50-$16.25.
