Mid-Market Update for 5/4/2017

Oil Sinks Another 4%

12:55pm (EST)

Oil stocks are taking it on the chin today as black gold has slid another 4% to under $46 a barrel. The continued pullback from the $50 level is certainly having a slight effect on today’s sluggish action along with nervousness on today’s upcoming healthcare vote.

A healthcare repeal vote has been set for this afternoon in the House, with Republicans believing they have enough votes to pass. Democrats will play hardball so expect a close vote. A positive vote could lead to a breakout in the healthcare sector while another delay could worsen the effects of a failing Obamacare system currently in place.

The Vanguard Health Care ETF (VHT) has made a nice recovery off the $136 level from mid-April and longer-term support since early February. Continued closes above $140 would be bullish for a run to resistance at $141-$141.50. A close above the latter gets fresh 52-week peaks in play. Support is at $138.50-$138 and the 50-day moving average if $140 fails.

As far as the market, the indexes are near their session lows with near-term support holding.

The Dow is lower by 68 points to 20,889 while the S&P 500 is off 3 points to 2,384. The Nasdaq is down 9 points to 6,062 and the Russell 2000 is sliding 9 points to 1,381.

I have updated our current trades and I’m working one 1-2 possible new trades ahead of the close. Stay locked-and-losded in case I take action. If the Nasdaq falls below 6,050, I’m targeting a quick QQQ trade.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 28-10 (74%). 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.


iShares Russell 2000 (IWM, $137.45, down $0.84)

IWM June 134 puts (IWM170616P00134000, $1.55, up $0.20)

Entry Price: $1.40 (5/2/2017)
Exit Target: $2.10-$2.80
Return: 11%
Stop Target: 70 cents

Action: Near-term support is at $137.50-$137. Resistance is at $138.


STMicroelectronics (STM, $16.24, up $0.02)

STM July 17.50 calls (STM170721C00017500, $0.50, flat)

Entry Price: $0.55 (5/2/2017)
Exit Target: $1.10
Return: -9%
Stop Target: None

Action: Resistance at $16.50. Support is at $16.


Cypress Semiconductor (CY, $13.23, down $0.06)

CY June 14 calls (CY170616C00014000, $0.40, flat)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -53%
Stop Target: 25 cents

Action: Support is at $13.25-$13. Resistance is at $13.50.