MomentumOptions.com Pre-Market Update for 5/25/2017

Dow Clears 21,000

8:00am (EST)

The bulls cleared a number of key resistance levels following the release of the Fed minutes on Wednesday and on news the zombies would be unwinding the securities on their balance sheet. Other nuggets of news gave the bulls renewed hope for May but the bears are still holding the small-caps underwater.

The Dow advanced 74 points, or 0.4%, to finish at 21,012. The blue-chips slipped 4 points on the open to 20,933 with rising support at 20,900-20,800 holding. The majority of the session remained bullish with the late day run reaching 21,022. Upper resistance at 20,950-21,000 was cleared with fresh hurdles at 21,150-21,200 on continued closes above the latter.

The S&P 500 added 6 points, or 0.3%, to end 2,404. The index held positive territory for nearly the entire session aside from a half-point dip to just under 2,398 intraday. Rising support at 2,385-2,380 easily held. The run to 2,405.58 and close above upper resistance at 2,395-2,400 was bullish. The all-time intraday high is at 2,405.77 with fresh fluff to 2,420-2,425 once cleared. Support is at 2,380-2,375 with a close 2,370 a warning sign.

The Nasdaq jumped 24 points, or 0.4%, to settle at 6,163. Tech held green throughout Wednesday with the high reaching 6,166. Lower resistance at 6,150-6,175 was cleared for the second-straight session with the bulls missing the all-time high by 20 points. Support is trying to move up to 6,125-6,100.

The Russell 2000 gained a point, or 0.1%, to close at 1,382. The small-caps held positive territory for much of the first half of action with the high checking in at 1,386. Lower resistance at 1,390-1,400 easily held before the fade to 1,376 ahead of the Fed minutes. Support at 1,370-1,365 was never threatened but levels to watch ahead of the 3-day weekend.

The S&P 500 Volatility Index ($VIX, 10.02, down 0.70) stayed mostly underwater aside from the intraday test to 10.90. Continued closes below 11.50 remain bullish with resistance and warning signs at 12.50-13.50. Lower support at 10.50-10 held on the low of 9.88.

From desk to press, futures look like this: Dow (+56); S&P 500 (+4); Nasdaq 100 (+17).

 

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, $8.44, up $0.18)

FOLD July 8 calls (FOLD170721C00008000, $1.00, down $0.05)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 18%
Stop Target: None

Action: Upper resistance at $8.25-$8.50 was pushed on Wednesday’s run to $8.44. Support is at $8-$7.75.

 

Spider Gold Shares (GLD, $119.61, up $0.47)

GLD June 122 calls (GLD170616C00122000, $0.50, up $0.05)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -40%
Stop Target: None

Action: Resistance at $119.50-$120 was split on yesterday’s test to $119.74. Support is at $119-$118.75.
Flex (FLEX, $16.98, up $0.25)

FLEX July 17 calls (FLEX170721C00017000, $0.60, up $0.10)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 33%
Stop Target: None

Action: Shares traded to a fresh 52-week peak of $17.03 to clear lower multi-year resistance at $17-$17.25. Support is trying to move up to $16.75-$16.50.

STMicroelectronics (STM, $16.36, up $0.25)

STM October 20 calls (STM171020C00020000, $0.50, up $0.05)

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

 

STM July 17.50 calls (STM170721C00017500, $0.40, up $0.05)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -38%
Stop Target: None

Action: Yesterday’s high tapped $16.40. Resistance is at $16.50-$16.75. Support is at $16.25-$16.

 

Viavi Solutions (VIAV, $11.14, down $0.12)

June 12 calls (VIAV170616C00022500, $0.12, down $0.05)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -66%
Stop Target: None

Action: Lower support at $11.25-$11 held on the backtest to $11.09. Resistance is at $11.50.

 

Cypress Semiconductor (CY, $13.89, up $0.85)

CY June 14 calls (CY170616C00014000, $0.40, up $0.27)

Entry Price: $0.85 (4/20/2017)
Exit Target: $1.70
Return: -53%
Stop Target: None

Action: Upper resistance at $13.50-$13.75 and the 50-day moving average was cleared on Wednesday’s surge to $13.93. Rising support is at $13.75-$13.50. Volume was heavy in these call options yesterday.