Pre-Market Update for 6/1/2017

Bears Get Second-Straight Win

8:00am (EST)

The bears won the last trading day of May following Wednesday’s slight pullback but the bulls did well for the month by getting the overall win. The Nasdaq extended its streak to seven-straight higher monthly closes while the small-caps pulled back. Yesterday’s action held near-term support and the first trading day in June is typically bullish.

The Dow dropped 20 points, or 0.1%, to finish at 21,008. The blue-chips traded to a high of 21,051 on the open but failed resistance at 21,150-21,200. The backtest to 20,942 quickly afterwards held lower support at 21,000-20,900. The 109-point trading range and close above upper support was slightly bullish.

The S&P 500 slipped a point, or 0.1%, to end 2,411. The index made a 3-point run that fell just shy of 2,416 and resistance at 2,420-2,425. The index turned red within 15 minutes of trading with the bottom reaching 2,403 over the next 15 minutes. Support at 2,400-2,390 was defended for the six-straight session.

The Nasdaq dipped 4 points, or 0.1%, to settle at 6,198. Tech tested a fresh all-time high of 6,221.99 within the opening minutes with resistance and fluff to 6,250-6,275 holding. Fresh support at 6,175-6,150 was split on the fade to 6,164 but levels that held into the closing bell.

The Russell 2000 fell a point, or 0.1%, to close at 1,370. The small-caps failed lowered resistance at 1,375-1,380 after stalling at 1,374 shortly after the open. I have talked about a close above the latter being a bullish development but a level that likely needs to clear by Friday’s close. The tumble to 1,354 split fresh support at 1,360-1,350 on the stumble to 1,354. A move below 1,340-1,335 could open the flood gates to additional selling pressure.

The S&P 500 Volatility Index ($VIX, 10.41, up 0.03) opened lower at 10.10 and kissed 9.93 with upper support at 9.75-9.50 easily holding. The intraday pop to 11.30 held upper resistance at 10.50-11.50.

I could have a New Trade this morning so stay locked-and-loaded.

From desk to press, futures look like this: Dow (+21); S&P 500 (+2); Nasdaq 100 (+11).


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.


Sony (SNE, $36.62, up $0.14)

SNE July 37 calls (SNE170721C00037000, $0.90, up $0.05)

Entry Price: $0.85 (5/26/2017)
Exit Target: $1.70
Return: 6%
Stop Target: None

Action: Lower resistance at $36.75-$37 held on yesterday’s run to $36.67. Support is at $36.25-$36.


Amicus Therapeutics (FOLD, $8.02, up $0.36)

FOLD July 8 calls (FOLD170721C00008000, $0.75, up $0.10)

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

Action: Shares traded to a high of $8.08 to clear upper resistance at $7.75-$8. Fresh hurdles are at $8.25-$8.50. Rising support is at $7.75-$7.50.


Spider Gold Shares (GLD, $120.62, up $0.48)

GLD June 122 calls (GLD170616C00122000, $0.60, up $0.05)

Entry Price: $0.75 (5/22/2017)
Exit Target: $1.50
Return: -20%
Stop Target: None

Action: GLD traded up to $121.23 on Wednesday with the calls reaching a peak of 83 cents. Resistance is at $121-$121.50. Support is at $119.25-$119.


Flex (FLEX, $17.26, up $0.01)

FLEX July 17 calls (FLEX170721C00017000, $0.75, flat)

Entry Price: $0.45 (5/16/2017)
Exit Target: $0.90
Return: 67%
Stop Target: 47 cents (Stop Limit)

Action: Shares cleared lower resistance at $17.25-$17.50 following yesterday’s trip to $17.30. Support remains at $17-$16.75.


STMicroelectronics (STM, $16.47, down $0.09)

STM October 20 calls (STM171020C00020000, $0.55, flat)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -21%
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: Yesterday’s peak reached $16.75 before the fade to $16.39 intraday. Resistance is at $16.75-$17. Support is at $16.25-$16.


Viavi Solutions (VIAV, $11.23, down $0.06)

June 12 calls (VIAV170616C00022500, $0.12, down $0.04)

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

Action: Support is at $11 with Wednesday’s low reaching $11.17. Resistance is at $11.50.


Cypress Semiconductor (CY, $13.99, up $0.10)

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

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

Action: Resistance is at $14-$14.25. Yesterday’s high tapped $14.05. Support is at $13.75-$13.50.