Mid-Market Update for 6/13/2017

Gold Holding 50-Day MA

1:45pm (EST)

I mentioned Gold ($GOLD) recently made a double-top at the $1,300 level last week and a level that held in mid-April as you can see from the chart below. The backtest towards the 50-day moving average is currently holding with risk to $1,250-$1,245 on a move below the $1,260 level. Resistance is at $1,275-$1,280.

We recently banked a 20% winner earlier this month playing call options on the run towards prior resistance and into the double-top formation. We used the Spider Gold Shares (GLD) to play the move and the chart is basically the same as the yellow metal. Below, you will see support at the $120 level and the 50-day moving average with risk to $119-$118.50 on a move below the latter. Resistance is at $120.75-$121.

While it is too early to take a position in GLD, I have the GLD July 122 calls (GLD170721C00122000, $1.15, down $0.05) on my Watch List to play on a move above $121. If GLD falls below $119-$118.50, I’m targeting the July 119 puts (GLD170721P00119000, $1.05, flat) for a possible bearish trade.

The charts for both Gold and GLD still look bullish as both the 50/100-day moving averages are in nice uptrends. However, we may need to wait another day or two to see how the pattern plays out.

With the portfolio light, we remain in great shape to play the next major trend. While I mentioned the prior rally could last until mid-June, I have also mentioned the back half of the month is historically bearish. My February price targets for the major indexes are still in play, but we may have seen short-term tops if there is continued weakness this week.

Heading into the final hours of trading, the Dow is up 88 points to 21,323 while the S&P 500 is adding 9 points to 2,438. The Nasdaq is higher by 38 points to 6,213 and the Russell 2000 is gaining 3 points to 1,422.

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


Momentum Options Play List

Closed Momentum Options Trades for 2017: 36-12 (75%). 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, $23.84, up $0.06)

BAC July 23 calls (BAC170721C00023000, $1.30, flat)

Entry Price: $0.60 (6/5/2017)
Exit Target: $1.50
Return: 117%
Stop Target: $1.10 (Stop Limit)

Action: Resistance is at $24. Support is at $23.50-$23.25.


Flex (FLEX, $16.65, down $0.07)

FLEX July 18 calls (FLEX170721C00018000, $0.10, flat)

Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Return: -75%
Stop Target: None

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


STMicroelectronics (STM, $15.88, up $0.19)

STM October 20 calls (STM171020C00020000, $0.30, flat)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -57%
Stop Target: None


STM July 17.50 calls (STM170721C00017500, $0.20, flat)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -69%
Stop Target: None

Action: Resistance is at $16. Support is at $15.50-$15.25.