MomentumOptions.com Pre-Market Update for 6/7/2017

Bears Win Second-Straight Session

8:00am (EST)

The market stayed stuck in neutral while slightly rolling back as Wall Street awaits bigger news later in the week. I mentioned congressional testimony and the overseas election remain this week’s most important headlines and the nervousness will likely continue into Thursday. Today’s session could provide better clues ahead of the events but lackluster trading will likely continue until there is more clarity.

The Dow fell 47 points, or 0.2%, to finish at 21,136. The blue-chips traded in negative territory throughout the session with the morning low reaching 21,118. Support at 21,100-21,000 held for the ninth-straight session with risk to 20,850-20,800 on a move below the latter. Resistance is at 21,450-21,500 on continued closes back above 21,200.

The S&P 500 declined 7 points, or 0.3%, to end 2,429. The index tested a low of 2,428 shortly after the open with upper support at 2,425-2,420 holding for the third-straight session. There is risk to 2,410-2,400 on a move below the latter. Resistance is at 2,450-2,460 on a move back above 2,440.

The Nasdaq lost 20 points, or 0.3%, to settle at 6,275. Tech managed to make a run to 6,304 intraday but the 9-point pop failed resistance at 6,325-6,350. The fade to 6,269 held rising support at 6,275-6,250. There is stretch to 6,200 on choppiness with a close below this level a bearish development.

The Russell 2000 slipped over a point, or 0.1%, to close at 1,395. The small-caps dropped 10 points in the opening minutes to 1,386 with lower support at 1,390-1,385 holding. I mentioned a move below 1,380 would be a bearish signal. Lowered resistance is at 1,400-1,405.

The S&P 500 Volatility Index ($VIX, 10.49, up 0.42) opened higher but made a backtest to 9.86 within the first 30 minutes of trading. Upper support at 9.75-9.50 held before the late day run to 10.77. Lower resistance at 10.50-11.50 was breeched but held into the closing bell.

I have made another adjustment to our SNE trade.

From desk to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx); Russell (xx).

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 33-10 (77%). 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.

 

Bank of America (BAC, $22.23, down $0.18)

BAC July 23 calls (BAC170721C00023000, $0.43, down $0.07)

Entry Price: $0.60 (6/5/2017)
Exit Target: $0.90-$1.20
Return: -28%
Stop Target: None

Action: Yesterday’s low reached $22.07 with lower support at $22.25-$22 holding. Resistance is at $22.50-$22.75.

 

Flex (FLEX, $17.40, down $0.04)

FLEX July 18 calls (FLEX170721C00018000, $0.40, down $0.03)

Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Return: 0%
Stop Target: None

FLEX July 17 calls (FLEX170721C00017000, $0.90, flat)

Entry Price: $0.45 (5/16/2017)
Exit Target: $1.35
Return: 100%
Stop Target: 80 cents (Stop Limit)

Action: Tuesday’s low tapped $17.31 with upper support at $17.25-$17 holding. Resistance is at $17.75-$18.

 

Sony (SNE, $38.13, up $0.46)

SNE July 37 calls (SNE170721C00037000, $1.80, up $0.30)

Entry Price: $0.85 (5/26/2017)
Exit Target: $2.50
Return: 112%
Stop Target: $1.25, raise to $1.60 (Stop Limit)

Action: Raise the Stop Limit from $1.25 to $1.60.

Fresh resistance is at $38.50-$38.75 following yesterday’s run to another 52-week high of $38.24. Rising support is at $37.75-$37.50.

 

Amicus Therapeutics (FOLD, $8.51, up $0.10)

FOLD July 8 calls (FOLD170721C00008000, $1.10, up $0.20)

Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 29%
Stop Target: None

Action: Shares traded to a high of $8.68 on Tuesday to clear lower resistance at $8.50-$8.75. Support is at $8.25-$8.

 

STMicroelectronics (STM, $16.37, down $0.16)

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, $0.40, flat)

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

Action: Shares traded down to $16.23 yesterday while closing below lower support at $16.50-$16.25. Resistance is at $16.75-$17.

 

Viavi Solutions (VIAV, $11.43, up $0.22)

June 12 calls (VIAV170616C00022500, $0.10, flat)

Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -71%
Stop Target: None

Action: Fresh resistance at $11.75-$12. Rising support is at $11.50-$11.25.

 

Cypress Semiconductor (CY, $14.05, down $0.09)

CY June 14 calls (CY170616C00014000, $0.45, flat)

Entry Price: $0.85 (4/20/2017)
Exit Target: 90 cents
Return: -41%
Stop Target: 30 cents (Stop Limit)

Action: Resistance is at $14.25. Support is at $14-$13.75.