MomentumOptions.com Pre-Market Update for 3/30/2017

Energy Sector Bouncing Back

8:00am (EST)

The mixed market action continued on Wednesday with the blue-chips closing lower for the 9th time in the past 10 sessions. Meanwhile, Energy stocks bounced back with Tech closing higher for the 12th time in the past 15 trading days. With two trading days left for the month, the bulls still have work to do to get a clean sweep on the major indexes but have enough time and more manageable levels to overcome.

The Dow dropped 42 points, or 0.2%, to close at 20,659. The blue-chips stayed underwater throughout the session with the low reaching 20,625. Rising support is trying to hold at 20,600-20,550 with continued risk to 20,450-20,400 and the 50-day moving average on a move below the latter. Resistance remains at 20,750-20,800.

The S&P 500 added 2 points, or 0.1%, to end at 2,361. The index traded down to 2,352 shortly after the open with rising support at 2,350-2,340 holding. Backup help is at 2,330-2,325 and the 50-day moving average on a move below the latter. The late day run to 2,363 keeps fresh resistance at 2,375-2,380 in play.

The Nasdaq jumped 22 points, or 0.4%, to finish at 5,897. Tech slipped a nickel on the open to 5,870 with rising support at 5,850-5,825 easily holding. A move below 5,800 would likely signal another near-term top. The steady climb to 5,900 tapped lower resistance at 5,900-5,925 but fell a field goal shy of holding.

The Russell 2000 gained 4 points, or 0.3%, to settle at 1,371. The small-caps fell 4 points to 1,363 with the first 15 minutes of action with continued rising support at 1,360-1,350 holding. Lower resistance at 1,370-1,375 held with a move above the latter and the 50-day moving average being a very bullish development.

The S&P 500 Volatility Index ($VIX, 11.42, down 0.11) tested a high of 11.70 on the opening action with lowered resistance at 12.50-13.50 holding. Upper support at 11-10.50 was nearly breeched on the intraday low of 11.03.

From desk to press, futures look like this: Dow (-3); S&P 500 (-2); Nasdaq 100 (+1); Russell (+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, $7.19, up $0.20)

TXMD May 7.50 calls (TXMD170519C00007500, $0.90, up $0.05)

Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 13%
Stop Target: None

Action: Fresh resistance is at $7.25-$7.50 with yesterday’s high reaching $7.28. Support is at $7-$6.75.

 

Viavi Solutions (VIAV, $10.85, up $0.02)

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, $0.35, down $0.03)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -17%
Stop Target: None

Action: Shares traded to a 52-week peak of $11.15 on Wednesday but failed holding lower resistance at $11-$11.25. Support is at $10.75-$10.50.

 

Starbucks (SBUX, $57.54, up $0.19)

April 52.50 puts (SBUX170421P00052500, $0.03, down $0.02)

Entry Price: $0.40 (3/10/2017)
Exit Target: $0.80
Return: -93%
Stop Target: None

Action: Lowered resistance at $57.50-$57.75 held on the run to $57.85. Support is at $57.25-$57.

 

Amicus Therapeutics (FOLD, $7.42, up $0.06)

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

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

Action: Shares kissed a high of $7.62 yesterday. Resistance is at $7.75-$8. Support is at $7.25-$7.

 

Tower Semiconductor (TSEM, $23.09, down $0.07)

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 $23-$22.75. Wednesday’s low touched $23.01. Resistance is at $23.25-$23.50.

 

Flex (FLEX, $16.56, down $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: Support is at $16.50-$16.25. Resistance is at $16.75-$17.