MomentumOptions.com Pre-Market Update for 4/28/2017
All About Tech
The bulls and bears settle for a draw on Thursday as both sides stood pat ahead of a busy after-hours session. Tech earnings were heavy as the four horseman: Alphabet (GOOG), Amazon (AMZN), Microsoft (MSFT) and Intel (INTC) reported quarterly results. This morning’s action ahead of the opening bell was equally important and highlighted the Oil sector.
The Dow added 6 points, or 0.03%, to settle at 20,981. The blue-chips traded in a 70-point range with the low reaching 20,935. Support at 20,800-20,700 easily held before the intraday rebound to 21,005. Resistance remains at 21,150-21,200 with the fresh blue-sky territory to 21,400-21,450 on a move above the latter.
The S&P 500 gained a point, or 0.1%, to close at 2,388. The index made a morning trip to 2,382 during the first half of action with rising support at 2,375-2,370 holding. A move below 2,365 would be a slightly bearish development. The second half push to 2,392 cleared lower resistance at 2,390-2,400 but a level that failed to hold.
The Nasdaq jumped 23 points, or 0.4%, to finish just under 6,049. Tech held positive territory throughout the session while reaching a fresh all-time peak of 6,050. My lower resistance targets at 6,075-6,100 are still in play and could trigger today. Support remains at 6,000-5,950.
The Russell 2000 slipped 2 points, or 0.2%, to end at 1,417. The small-caps made a morning run to 1,423 but failed 1,425 and new record highs. Continued closes above this level gets 1,440-1,445 in the mix. Support is at 1,400-1,395 on a pullback. Yesterday’s low tapped 1,413.
The S&P 500 Volatility Index ($VIX, 10.36, down 0.49) bubbled to a midday high of 11.08 but held near-term resistance at 11.50 for the third-straight session. Upper support at 10.50-10 was cleared on the intraday low of 10.33 and was a bullish sign.
Alphabet and Amazon shares were higher in extended trading last night after both companies topped earnings estimates and revenue. Microsoft and Intel shares were lower in after-hours trading on Thursday. Intel beat by a penny but missed on revenue. Microsoft beat by 3-cents but missed on sales, as well.
I have set a Limit Order to close HALF the SNAP position along with a raised Stop Limit. I have also set a Stop Limit on CSCO.
From desk to press, futures look like this: Dow (-11); S&P 500 (-2); Nasdaq 100 (-3).
Special Notice: Please check out the entire 2017 portfolio by clicking on the link. You will need to be logged into your account to see all of the trades YTD.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 24-10 (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.
Oracle (ORCL, $44.77, up $0.08)
ORCL June 46 calls (ORCL170616C00046000, $0.55, flat)
Entry Price: $0.55 (4/26/2017)
Exit Target: $1.10
Stop Target: None
Action: Thursday’s high reached $44.94. with shares clearing lower resistance at $44.75-$45. A close above the latter would be bullish for continued momentum. Support is at $44.50-$44.25.
Cisco Systems (CSCO, $33.75, up $0.35)
CSCO May 34 calls (CSCO170519C00034000, $0.58, up $0.16)
Entry Price: $0.42 (4/25/2017)
Exit Target: $0.85 (closed 1/3 @ 60 cents on 4/27/2017)
Stop Target: 48 cents (Stop Limit)
Action: Set a Stop Limit at 48 cents on the remaining 2/3rd’s of the trade.
Shares traded up to $34.11 yesterday with the options peaking at 64 cents. Lower resistance at $33.75-$34 held into the closing bell and was a bullish signal. Support is at $33.50-$33.25.
Snap (SNAP, $22.01, up $0.43)
SNAP May 23 calls (SNAP170519C00023000, $1.20, up $0.20)
Entry Price: $0.75 (4/21/2017)
Exit Target: $1.50 (Limit Order on half)
Stop Target: 77 cents, raise to $1 (Stop Limit)
Action: Set a Limit Order to close HALF the trade at $1.50. Raise the Stop Limit from 77 cents to $1. This locks-in at least a 33% profit.
Shares traded to a high of $22.12 on Thursday following bullish talking head chatter. We have been in the trade for over a week so we got a head start on some of the recent buildup in the option pits. These options were heavily traded yesterday along with the SNAP May 24 calls. However, these May options also expire in three weeks and why I have been quicker to take profits while also protecting them.
Resistance is at $22.25-$22.50. Rising support is at $21.75-$21.50.
Cypress Semiconductor (CY, $14.40, up $0.42)
CY June 14 calls (CY170616C00014000, $1.00, up $0.15)
Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Stop Target: None
Action: The company topped estimates by two pennies while revenues were also higher by $200 million. Shares were up nearly 3% in after-hours trading last night to $14.80.
Fresh resistance is at $14.50-$14.75 following the run to $14.49 yesterday. The 52-week peak is at $14.98 if last night’s gains carry over into the open. Rising support is at $14.25-$14.
Square (SQ, $18.23, up $0.15)
SQ June 18 calls (SQ170616C00018000, $1.30, up $0.10)
Entry Price: $0.95 (4/20/2017)
Exit Target: $1.90
Stop Target: $1.05 (Stop Limit)
Action: Shares traded to a fresh 52-week high of $18.45 on Thursday. Fresh resistance is at $18.50-$18.75. Support is at $18-$17.75.