MomentumOptions.com Pre-Market Update for 6/9/2017
Financial Stocks Rally/ Trade Alerts (BAC/ VIAV)
Despite the pullback after fresh all-time highs were set on Thursday, the overall market action was bullish as the Financial stocks had a good day. In fact, the breakout in the Financial Sector SPDR (XLF) has the index at its highest level in a month and, in the process, cleared its 50/100-day moving averages average. This was a very bullish development. Today’s action should provide good clues for next week as I have been mentioning the current rally could have legs through mid-June.
The Dow gained 8 points, or 0.04%, to settle at 21,182. The blue-chips traded to an all-time intraday high north of 21,265 while clearing resistance at 21,200. Additional hurdles are at 21,450-21,500 on continued closes above this level. Support at 21,100-21,000 easily held on the late day fade to 21,138.
The S&P 500 advanced over a half-point, or 0.03%, to close 2,433. The index was slightly choppy during the first half of action before making a run to 2,439. The bulls missed clearing a record high by a point. Resistance is at 2,450-2,460 on continued closes above 2,440. The backtest to 2,427 during the second half of trading held near-term support at 2,425-2,420.
The Nasdaq jumped 24 points, or 0.4%, to finish at 6,321. Tech traded to a low of 6,282 during the opening hour with upper support at 6,275-6,250 holding for the fifth-straight session. Lower resistance at 6,325-6,350 was challenged on the push to a record high of 6,324.
The Russell 2000 surged nearly 19 points, or 1.4%, to end at 1,415. The small-caps slipped two points on the open to 1,394 with prior support at 1,390-1,385 easily holding. The midday high of 1,419 failed fresh resistance at 1,420-1,425 with a move above the latter leading to lifetime highs. I would like to see 1,405-1,400 hold on any weakness today.
The S&P 500 Volatility Index ($VIX, 10.16, down 0.23) traded in negative territory for much of the session aside from the morning high of 10.53. Lower resistance at 10.50-11.50 held before midday test to 9.73. Upper support at 9.75-9.50 was breached but held.
I have set a Stop Limit for BAC to start protecting profits. I have also set a Stop Limit for VIAV to save the remaining premium.
From desk to press, futures look like this: Dow (+7); S&P 500 (+2); Nasdaq 100 (-2).
Special Notice: Here is a look at all of the trades, year-to-date. The Members Area will be updated over the weekend. The website has been updated with new login features that should make navigating the site a lot more easier. Text Alerts are coming soon. In the meantime, please send me an email at Rick@MomentumOptionsTrading.com with the subject line Text Alert. Include the phone number you wish to use.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 35-11 (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.
Bank of America (BAC, $22.97, up $0.37)
BAC July 23 calls (BAC170721C00023000, $0.78, up $0.20)
Entry Price: $0.60 (6/5/2017)
Exit Target: $0.90-$1.20
Stop Target: 63 cents (Stop Limit)
Action: Set an initial Stop Limit at 63 cents to protect profits.
Shares traded to a high of $23.21 on Thursday with the calls trading to a high of 89 cents. Fresh resistance is at $23-$23.25. Rising support is at $22.75-$22.50.
Flex (FLEX, $17.35, up $0.09)
FLEX July 18 calls (FLEX170721C00018000, $0.35, flat)
Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Stop Target: None
Action: Shares traded to a high of $17.46 into yesterday’s close. Resistance is at $17.50. Support is at $17.25-$17.
Amicus Therapeutics (FOLD, $8.63, up $0.04)
FOLD July 8 calls (FOLD170721C00008000, $1.10, flat)
Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Stop Target: None
Action: Resistance is at $8.75 with Thursday’s high reaching $8.72. Rising support is at $8.50-$8.25.
STMicroelectronics (STM, $17.34, up $0.40)
STM October 20 calls (STM171020C00020000, $0.65, up $0.05)
Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Stop Target: None
STM July 17.50 calls (STM170721C00017500, $0.60, up $0.10)
Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Stop Target: None
Action: Thursday’s closing high cleared lower resistance is at $17.25-$17.50. Rising support is at $17-$16.75.
Viavi Solutions (VIAV, $11.43, up $0.06)
June 12 calls (VIAV170616C00022500, $0.08, flat)
Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Stop Target: 5 cents (Stop Limit)
Action: Set a Stop Limit at 5 cents to save the remaining premium.
Although these options have another week before expiration, we will need a run past $12.35 to break even. VIAV has been a great trading stock this year but this trade hasn’t worked out. We can revisit the stock on a move past $11.75-$12. The 52-week peak is at $11.89.
Lower resistance at $11.50-$11.75 held with yesterday’s high tapping $11.45. Support is at $11.25.