MomentumOptions.com Pre-Market Update for 3/31/2017
Nasdaq Closes at Record High
8:00am (EST)
The bulls moved a little closer in their effort to claim the majority of the monthly wins for the indexes but still have a little work to do today. The bears are feeling frustrated following last week’s pullback and after failing to keep momentum this week. In any event, today’s session will be exciting to watch, regardless of the outcome, as April is shaping up to be an incredible month for trading opportunities.
The Dow advanced 69 points, or 0.3%, to end at 20,728. The blue-chips nearly held positive territory throughout Thursday aside from the opening dip to 20,643. Support at 20,600-20,550 held for the third-straight session. Lower resistance at 20,750-20,800 was challenged following the intraday run to 20,753.
The S&P 500 climbed 7 points, or 0.3%, to finish at 2,368. The index slipped 3 points on the open to 2,358 with rising support at 2,350-2,340 easily holding. The push to 2,370 fell shy of resistance at 2,375-2,380 with a move above the latter being a bullish development.
The Nasdaq added 16 points, or 0.3%, to settle at 5,914. Tech also fell 3 points shortly after the open to 5,894 with rising support at 5,875-5,850 hardly tested. The second half trip to 5,916 and close above lower resistance at 5,900-5,925 was super bullish. The fresh closing high bested the previous record of 5,904 with the recent lifetime high north of 5,928.
The Russell 2000 jumped 10 points, or 0.8%, to close at 1,382. The small-caps held positive territory throughout Thursday with the high reaching falling just shy of 1,383. The steady strength and move above resistance at 1,370-1,375 and the 50-day moving average being a bullish signal. Fresh hurdles are at 1,395-1,400. Rising support will try to hold at 1,370-1,365 with a close below 1,360 signaling a possible short-teem top.
The S&P 500 Volatility Index ($VIX, 11.54, up 0.12) traded down to 11.12 during the first half of action with upper support at 11-10.50 holding. The high of 11.64 afterwards held resistance at 12.50-13.50.
From desk to press, futures look like this: Dow (-31); S&P 500 (-5); Nasdaq 100 (-10).
Momentum Options Play List
Closed Momentum Options Trades for 2017: 21-4 (84%). 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, $7.06, down $0.13)
TXMD May 7.50 calls (TXMD170519C00007500, $0.85, down $0.05)
Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 6%
Stop Target: None
Action: Shares tested a low of $6.95 yesterday. Support is at $7-$6.75. Resistance is at $7.25-$7.50.
Viavi Solutions (VIAV, $10.80, down $0.05)
VIAV May 12 calls (VIAV170519C00012000, $0.28, down $0.03)
Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: -3%
Stop Target: None
VIAV April 11 calls (VIAV170421C00011000, $0.30, down $0.05)
Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -29%
Stop Target: None
Action: Thursday’s low touched $10.72. Support is at $10.75-$10.50. Resistance is at $11-$11.25.
Amicus Therapeutics (FOLD, $7.21, down $0.21)
FOLD April 8 calls (FOLD170421C00008000, $0.15, down $0.10)
Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -75%
Stop Target: None
Action: Support is at $7.25-$7 with yesterday’s bottom tapping $7.11. Resistance is at $7.75-$8.
Tower Semiconductor (TSEM, $23.26, up $0.17)
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: Lower resistance at $23.25-$23.50 was cleared and held following Thursday’s run to $23.32. The 52-week high is at $23.65. Support is at $23-$22.75.
Flex (FLEX, $16.79, up $0.23)
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: Yesterday’s peak reached $16.84 and the recent 52-week high is at $16.99. Resistance is at $16.75-$17. Support is at $16.50-$16.25.
