MomentumOptions.com Mid-Market Update for 5/23/2017

Transportation Sector Showing Strength

1:35pm (EST)

I mentioned coming into the week the Transportation sector needed to show continued momentum to keep all-time highs in play. The chart below shows the late April pullback from 9,300 that reached the 8,750 level and the 200-day moving average last week.

Today’s run towards 8,900 today looks encouraging but further resistance lies ahead at 9,000-9,100 and the 50-day moving average. A move above 9,200 is needed to negate the bearish setup. Fresh support is at 8,900-8,850 with a move below the latter being a bearish development.

Another encouraging sign is Oil, as prices are up after another day of gains and are now firmly above $51 a barrel. The market seems to get nervous on dips below $50 but sustained prices above this level should help Energy stocks.

Much of today’s news has been dominated by coverage of the terror attack in Manchester. Needless to say, it’s another sad day for freedom and reminds us of the world we live in. Aside from the political drama concerning Russia, the market is trying to digest the Trump administration’s budget proposal that was released today.

The major indexes are mixed with Tech showing slight weakness on fairly-light trading volume. The Dow is up 44 points to 20,939 while the S&P 500 is climbing 4 points to 2,398. The Nasdaq is down 2 points to 6,131 and the Russell 2000 is adding a point to 1,377.

I have updated our current trades so let’s go check the tape.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 32-10 (76%). 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.

 

Amicus Therapeutics (FOLD, $8.17, down $0.24)

FOLD July 8 calls (FOLD170721C00008000, $0.95, down $0.05)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 12%
Stop Target: None

Action: Support is at $8-$7.75. Resistance is at $8.25-$8.50.

 

Spider Gold Shares (GLD, $119.41, down $0.49)

GLD June 122 calls (GLD170616C00122000, $0.50, down $0.20)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -33%
Stop Target: None

Action: Support is at $119-$118.75. Resistance at $119.50-$120.

 

Flex (FLEX, $16.77, down $0.06)

FLEX July 17 calls (FLEX170721C00017000, $0.55, down $0.05)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 22%
Stop Target: None

Action: Support is at $16.50-$16.25. Resistance is at $17-$17.25.

 

STMicroelectronics (STM, $16.20, down $0.08)

STM October 20 calls (STM171020C00020000, $0.50, flat)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -29%
Stop Target: None

 

STM July 17.50 calls (STM170721C00017500, $0.45, flat)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -31%
Stop Target: None

Action: Support is at $16.25-$16. Resistance is at $16.50-$16.75.

 

Viavi Solutions (VIAV, $11.24, down $0.14)

June 12 calls (VIAV170616C00022500, $0.17, down $0.03)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -51%
Stop Target: None

Action: Support is at $11-$10.75. Resistance is at $11.25-$11.50.

 

Cypress Semiconductor (CY, $12.99, down $0.15)

CY June 14 calls (CY170616C00014000, $0.15, down $0.05)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -82%
Stop Target: None

Action: Support is at $13-$12.75. Resistance is at $13.25-$13.50.