Mid-Market Update for 4/17/2017

Earnings for the Week

1:40pm (EST)

Futures were negative throughout the night but turned positive and gained strength ahead of this morning’s open. This set up a possible opening fade within the first hour of action and a recent trading pattern over the past few sessions. However, the bulls have maintained their slight momentum throughout the session while pushing near-term support.

I mentioned a few of the financial stocks this morning that would be reporting earnings this week and I wanted to expand on the list as there could be a possible bullish or bearish trade before or after announcements.

Netflix (NFLX) and United Continential (UAL) will report earnings after today’s closing bell.

Bank of America (BAC), Comerica (CMA), Harley-Davidson (HOG), Johnson & Johnson (JNJ), Charles Schwab (SCHW), and UnitedHealth Group (UNH) will report numbers on Tuesday.

Wednesday’s highlights include American Express (AXP), BlackRock (BLK), eBay (EBAY), Qualcomm (QCOM), TD Ameritrade (AMTD) and U.S. Bancorp (USB).

Bank of New York Mellon (BK), BB&T (BBT), Verizon (VZ) and Visa (V) are scheduled to report their numbers on Thursday.

The week wraps up with General Electric (GE), Honeywell International (HON), and Schlumberger (SLB) announcing ahead of Friday’s opening bell.

Turning our focus to the market, the Dow is up 132 points to 20,586 while the S&P 500 is gaining 13 points to 2,342. The Nasdaq is higher by 33 points to 5,838 and the Russell 2000 is adding 5 points to 1,351.

It is a little too early to tell if today’s action is an oversold bounce, or the start of a bottoming process with the rebound rally I have forecasted. In any event, I have a plethora of possible bullish and bearish trades waiting in the wings but we may have to wait another day to initiate fresh positions.

I will be watching the action into the closing bell for an opportunity so stay locked-and-loaded. In the meantime, let’s go check on our current trades.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 22-9 (71%). 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.


Best Buy (BBY, $48.23, down $0.04)

BBY May 45 puts (BBY170519P00045000, $0.56, down $0.02)

Entry Price: $0.57 (4/13/2017)
Exit Target: $1.15
Return: -2%
Stop Target: None

Action: Support is at $48-$47.50. Resistance is at $48.75-$49.


STMicroelectronics (STM, $14.82, up $0.21)

STM May 15 calls (STM170519C00015000, $0.75, up $0.10)

Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: -35%
Stop Target: 55 cents

Action: Resistance is at $14.75-$15 and the 50-day moving average. Support is at $14.50-$14.25.