Mid-Market Update for 5/8/2017

Earnings for the Week

12:15pm (EST)

The market shrugged off the “bullish” overseas news of the France election with the bears controlling today’s first half of action. Of course, it is not how you start but how you finish, and there is still another half of trading to go. While there was Wall Street hope higher highs would continue into play on the headlines from the weekend, the top end of the current trading range is still intact.

There are still economic and earnings news that could help with market action this week and I wanted to cover the latter for possible trade setups.

Pandora Media (P), Hertz Global Holdings (HTZ) and MeetMe (MEET) will announce numbers after today’s closing bell.

Tuesday’s earnings include Dean Foods (DF), Electronic Arts (ERTS), Wayfair (W), Walt Disney (DIS), and Yelp (YELP).

21st Century Fox (FOX), Hologic (HOLX), Mazor Robotics (MZOR), SodaStream International (SODA) and Whole Foods Market (WFM) will announce quarterly results on Wednesday.

The retail sector highlights Thursday’s action with Macy’s (M), Nordstrom (JWN), and Kohl’s (KSS) scheduled to report. Other companies include Teva Pharmaceuticals (TEVA), Toyota Motor (TM), and Trade Desk (TTD).

Amaya (AYA) and JC Penney (JCP) will announce ahead of Friday’s opening bell.

The Dow is lower by 13 points to 20,993 while the S&P 500 is off 2 points to 2,397. The Nasdaq is down 10 points to 6,089 and the Russell 2000 is sliding 8 points to 1,388.

I have updated our current trades so let’s go check the tape. I’m also working on 1-2 new trades ahead of the close so stay locked-and-loaded.


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.


Viavi Solutions (VIAV, $11.48, up $0.15)

June 12 calls (VIAV170616C00022500, $0.42, up $0.07)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: 20%
Stop Target: None

Action: Shares have traded to a 52-week high of $11.67 today. Fresh resistance is at $11.50-$11.75. Support is at $11.25-$11.


iShares Russell 2000 (IWM, $137.97, down $1.02)

IWM June 134 puts (IWM170616P00134000, $1.20, up $0.10)

Entry Price: $1.40 (5/2/2017)
Exit Target: $2.10-$2.80
Return: -14%
Stop Target: 70 cents (Stop Limit)

Action: Near-term support is at $138-$137.50. Resistance is at $138.50-$139.


STMicroelectronics (STM, $16.48, down $0.22)

STM July 17.50 calls (STM170721C00017500, $0.65, down $0.05)

Entry Price: $0.55 (5/2/2017)
Exit Target: $1.10
Return: 18%
Stop Target: None

Action: Support is at $16.50-$16.25. Resistance is at $16.75-$17.


Cypress Semiconductor (CY, $13.30, down $0.15)

CY June 14 calls (CY170616C00014000, $0.35, down $0.05)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -59%
Stop Target: 25 cents

Action: Support is at $13.25-$13. Resistance is at $13.50-$13.75 and the 50-day moving average.