MomentumOptions.com Mid-Market Update for 3/31/2017

Wall Street Thunderstruck

2:05pm (EST)

Thunder, thunder, thunder, thunder
I was caught, In the middle of a railroad track
I looked round, And I knew there was no turning back
My mind raced, And I thought what could I do
And I knew, There was no help, no help from you
Sound of the drums, Beating in my heart
The thunder of guns, Tore me apart
You’ve been Thunderstruck

For long-time subscribers, most of you know I play a classic tune from time to time on a Friday. Today’s AC/DC theme song is for the Wall Street traders that were nervous about getting on the bull train, or staying on, and for the naysayers that continue to say the market has peaked.

Following last week’s 2% pullback, the catcalls grew louder that “THE” market top was in and that the Trump rally was over. I have avoided both of these theories as I rely more on technical indicators and market sentiment.

I’m humbled to start the year with a 21-4 record for the newsletter. However, with the first quarter just about in the books, it is one of the rare times I can relax over a weekend. Of course, my worries over the market and my performance will be back in full swing on Monday but I wanted to take this time to thank each one of you for supporting the newsletter. Especially, after the transition from my previous publisher.

I’m disappointed I had four losing trades, and I realize trading options is the hardest game in town, but I do strive to be perfect because I HATE losing money. Most option traders (and newsletters) can struggle with success so with a 84% win rate, I feel blessed. My 10-year track record is roughly 70% for over 1,000 trades and you have to do the homework and be willing to put in the hours to be successful. The track records are available to view on the website

On that note, I have mentioned continued record highs would come in April despite last week’s pullback. We are almost there early as the Nasdaq has come within a quarter-point of setting an all-time intraday record high.

The Dow is down 19 points to 20,709 while the S&P 500 is adding a point to 2,369. The Nasdaq is higher by 10 points to 5,924 and the Russell 2000 is higher by 7 points to 1,389.

I have updated our current trades ahead of the weekend so let’s go check the action. Additionally, I will be sending out the Momentum Options trading manual this weekend to 1-year subscribers. We had to get it into PDF format so please email me again if you would like a copy. It is a 221-page read that offers insights to how I trade.

 

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, $7.27, up $0.21)

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

Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 12%
Stop Target: None

Action: Resistance is at $7.25-$7.50. Support is at $7-$6.75.

 

Viavi Solutions (VIAV, $10.66, down $0.14)

VIAV May 12 calls (VIAV170519C00012000, $0.25, down $0.03)

Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: -14%
Stop Target: None

VIAV April 11 calls (VIAV170421C00011000, $0.23, down $0.05)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -45%
Stop Target: None

Action: Support is at $10.75-$10.50. Resistance is at $11-$11.25.

 

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

FOLD April 8 calls (FOLD170421C00008000, $0.15, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -75%
Stop Target: None

Action: Support is at $7. Resistance is at $7.25.

 

Tower Semiconductor (TSEM, $23.21, 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: Resistance is at $23.25-$23.50. Support is at $23-$22.75.

 

Flex (FLEX, $16.77, down $0.02)

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.