Mid-Market Update for 4/24/2017

Small-Caps Push 1,400/ Trade Alert (BBY)

12:05pm (EST)

Today’s giddiness has come from the overseas markets as they are rallying on the French election news. The final two candidates have very different views on where they want to take France in the future.

Another runoff election is coming in early May to decide the winner and if the country will remain in the eurozone. The pro-euro candidate won with a sizable margin, and is expected to prevail in the coming weeks over the anti-euro candidate.

I mentioned the small-caps and Tech were on their way to major milestones this week if momentum stayed strong. Today’s gains are pushing both indexes towards the 1,400 and 6,000 levels, respectively, while the Dow and S&P 500 are close to clearing major hurdles.

The Dow is up 194 points to 20,742 while the S&P 500 is gaining 20 points to 2,369. The Nasdaq is higher by 62 points to 5,972 and the Russell 2000 is adding 16 points to 1,396.

It will be interesting to see how the action fares once the European markets settle. I would like to see much of the gains hold with the possibility of higher highs into the closing bell.

I have updated our current trades along with a Trade Alert for BBY so let’s go check the tape. I could have another new trade ahead of the close so stay locked-and-loaded.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 23-9 (72%). 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.


Snap (SNAP, $20.14, up $0.21)

SNAP May 23 calls (SNAP170519C00023000, $0.85, up $0.05)

Entry Price: $0.75 (4/21/2017)
Exit Target: $1.50
Return: 13%
Stop Target: None

Action: Near-term resistance is at $21-$21.25. A move above $22 could lead to a run towards $23.50-$24. Support is at $20.50-$20.


Cypress Semiconductor (CY, $13.97, down $0.02)

CY June 14 calls (CY170616C00014000, $0.85, flat)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: 0%
Stop Target: None

Action: Support is at $13.75-$13.50. Resistance is at $14.25-$14.50.


Square (SQ, $17.75, up $0.26)

SQ June 18 calls (SQ170616C00018000, $1.00, up $0.05)

Entry Price: $0.95 (4/20/2017)
Exit Target: $1.90
Return: 5%
Stop Target: None

Action: Resistance is at $17.75-$18. Support is at $17.50-$17.25.


Best Buy (BBY, $50.95, up $0.35)

BBY May 45 puts (BBY170519P00045000, $0.10, down $0.10)

Entry Price: $0.57 (4/13/2017)
Exit Target: $1.15
Return: -82%
Stop Target: None

Action: Close the trade at current levels to save the remaining premium.


STMicroelectronics (STM, $15.34, up $0.70)

STM May 15 calls (STM170519C00015000, $0.90, up $0.30)

Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: -22%
Stop Target: 40 cents (Stop Limit)

Action: Fresh resistance is at $$15.50-$15.75. Support is at $15-$14.75.