MomentumOptions.com Pre-Market Update for 4/5/2017

Seesaw Action Continues

8:00am (EST)

The bulls snapped a two session slide following Tuesday’s market gains as the recent back-and-forth action continues. Volatility slid 5% and oil continues to rebound while holding the $50 level, both good signs. The rest of the week could provide a tight trading range ahead of Friday’s unemployment numbers.

The Dow advanced 39 points, or 0.2%, to close at 20,689. The blue-chips traded down to 20,605 shortly after the open with upper support at 20,600-20,550 holding. Backup help is at 20,400-20,350 on a move below the latter. Resistance at 20,750-20,800 stood tall following the stall at 20,701 afterwards.

The S&P 500 added a point, or 0.1%, to end at 2,360. The index was weak throughout the first half of action with the low checking in at 2,350. Upper support at 2,350-2,340 held with a move below 2,335 a bearish development. Resistance remains at 2,370-2,375 on the close at the session high.

The Nasdaq gained nearly 4 points, or 0.1%, to finish at 5,898. Tech tested a morning high of 5,901 but failed resistance at 5,900-5,925. A close above the latter would be a bullish signal for a run to 5,975-6,000 and fresh all-time highs. Upper support at 5,875-5,850 held on the intraday backtest 5,878 with a close below the latter likely signaling a short-term top.

The Russell 2000 slipped over a point, or 0.1%, to settle at 1,368. The small-caps made an opening run to 1,374 with fresh resistance at 1,375-1,380 and the 50-day moving average holding. The late day low of 1,362 held support at 1,365-1,360 and the 100-day moving average.

The S&P 500 Volatility Index ($VIX, 11.79, down 0.59) traded up to 13.07 shortly after the opening bell to split resistance at 12.50-13.50. The low fade to 11.70 came close to breeching upper support at 11.50-11.

From desk to press, futures look like this: Dow (+17); S&P 500 (+1); Nasdaq 100 (-1).

 

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.

 

STMicroelectronics (STM, $15.20, down $0.08)

STM May 15 calls (STM170519C00015000, $1.00, down $0.05)

Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: -13%
Stop Target: 55 cents

Action: Support is at $15-$14.75 with yesterday’s low reaching $15.14. Resistance at $15.25-$15.50.

 

TherapeuticsMD (TXMD, $7.61, up $0.19)

TXMD May 7.50 calls (TXMD170519C00007500, $1.00, up $0.05)

Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 25%
Stop Target: None

Action: Shares raced to a high of $8.12 on Tuesday but failed holding upper resistance at $7.75-$8. Support is at $7.50-$7.25.

 

Viavi Solutions (VIAV, $10.32, down $0.03)

VIAV May 12 calls (VIAV170519C00012000, $0.15, flat)

Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: -48%
Stop Target: None

VIAV April 11 calls (VIAV170421C00011000, $0.10, down $0.05)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -76%
Stop Target: None

Action: Support is at $10.25-$10 and the 50-day moving average. Yesterday’s low tapped $10.29. Resistance is at $10.50-$10.75.

 

Amicus Therapeutics (FOLD, $7.23, flat)

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

 

Tower Semiconductor (TSEM, $22.61, down $0.06)

TSEM April 24 calls (TSEM170421C00024000, $0.10, down $0.05)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -85%
Stop Target: None

Action: Shares tested a low,of $22.33 on Tuesday. Support is at $22.50-$22.25. Resistance is at $22.75-$23.

 

Flex (FLEX, $16.70, up $0.02)

FLEX April 17 calls (FLEX170421C00017000, $0.15, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -57%
Stop Target: None

Action: Resistance is at $16.75-$17. Yesterday’s peak reached $16.83. Support is at $16.50-$16.25.