MomentumOptions.com Pre-Market Update for 6/14/2017

Dow, S&P 500 Close at Record Highs

8:00am (EST)

The Dow set a fresh all-time intraday high and joined the S&P 500 is notching another all-time record close on Tuesday. The bullish action carried over into Tech and the small-caps and comes ahead of today’s widely anticipated decision to raise interest rates by another quarter point.

The Dow jumped 92 points, or 0.4%, to close at 21,328. The blue-chips held positive territory throughout the session while trading to an all-time high of 21,332. The close above 21,300 keeps my near-term fluff targets of 21,450-21,500 in play. Support remains at 21,200-21,100 with a close below 21,000 signaling a possible near-term top.

The S&P 500 added nearly 11 points, or 0.5%, to settle 2,440. The index tested an intraday high of 2,441 while closing on lower resistance at 2,440-2,450. There is a chance for a possible run towards 2,465-2,470 on a move above the latter. Near-term support remains at 2,425-2,420 with backup help at 2,410-2,400.

The Nasdaq gained 45 points, or 0.7%, to end at 6,220. Tech also held green throughout the session with the high reaching 6,226. The close above lower resistance at 6,200-6,225 was a bullish signal with additional hurdles at 6,275-6,300. Shaky support is at 6,175-6,150 with risk to 6,100 on another move below the latter.

The Russell 2000 advanced 6 points, or 0.5%, to finish just under 1,426. The small-caps traded to a midday peak of 1,427 with upper resistance at 1,420-1,425 holding into the closing bell. The all-time high is north of 1,433 with fluff to 1,440-1,450 on a move above 1,435. Support remains at 1,410-1,400.

The S&P 500 Volatility Index ($VIX, 10.42, down 1.04) fell 9% and stayed deflated throughout Tuesday with the low reaching 10.26. The move below upper support at 10.50-10 was a bullish sign. Resistance is at 11.50-12.50.

From desk to press, futures look like this: Dow (-13); S&P 500 (-2); Nasdaq 100 (-7).

 

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, $23.77, down $0.01)

BAC July 23 calls (BAC170721C00023000, $1.25, down $0.05)

Entry Price: $0.60 (6/5/2017)
Exit Target: $1.50, raise to $1.75 (Limit Order on half)
Return: 108%
Stop Target: $1.10 (Stop Limit)

Action: Raise the Exit Target from $1.50 to $1.75 with a Limit Order on half.

Shares traded up to $24.11 yesterday with the call options peaking at $1.52. Resistance remains at $24. Short-term support is at $23.50.

 

Flex (FLEX, $16.71, down $0.01)

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: Upper support at $16.50-$16.25 held with yesterday’s low reaching $16.45. Resistance is at $17. The recent pullback from $17.75 on the Tech pullback was a disappointment but these options still have over a month of time premium.

 

STMicroelectronics (STM, $15.93, up $0.24)

STM October 20 calls (STM171020C00020000, $0.35, up $0.05)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -50%
Stop Target: None

 

STM July 17.50 calls (STM170721C00017500, $0.25, up $0.05)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -62%
Stop Target: None

Action: Shares traded to a high of $16.08 yesterday. Resistance is at $16. Support is at $15.50-$15.25.