Mid-Market Update for 6/15/2017

June Swoon Possibly in Play/ Trade Alerts (FLEX, STM)

1:00pm (EST)

While predicting short-term and longer-term market tops, and bottoms, is never an easy task, preparing for one is another story. When whipsaw action appears, or tight trading ranges are in play, it is often a sign of a shakeout period. It is also a good time to review your game plan and notes and not to stray to far off the path.

From 5/15/2017:

“This month’s lows on the Nasdaq reached 6,053 and 6,054 on May 3rd and 4th, respectively. I mentioned this possibly signaled a short-term bottom and why the 6,050 level has been highlighted in my earlier notes and over the past few weeks.”

From 5/29/2017:

“This week will be shortened following Monday’s holiday but the action could heat up as Wall Street gets back from vacation and back to work. While May’s outcome is still up for grabs over the next two days, the first trading day of June is typically bullish. I mentioned last week the current rally could last into mid-June and a lot will depend on the small-caps this week along with follow through on the blue-chips.”

Well, the small-caps and Dow managed to do their part. The broader market and Tech also chipped in with all of the major indexes hitting fresh all-times highs last Friday that continued into this week.

With 2Q earnings season three weeks away and summer vacations in full swing, volume could start dwindling and that could signal lackluster trading. The continued good news is the portfolio is light although closing three down trades doesn’t thrill me. My hate for losing trades is greater than my thrill for winning trades, trust me, but they are now closed.

Futures were a little rocky last night and worsened into this morning’s open. Near-term support is holding so the action is tenuous at the current moment. The Dow is down 29 points to 21,345 while the S&P 500 is declining 10 points to 2,427. The Nasdaq is lower by 52 points to 6,142 and the Russell 2000 is off a 12-pack to 1,405.

I could have 2 New Trades within the next hour or so stay locked-and-loaded into the closing bell.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 37-12 (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.


Flex (FLEX, $16.48, down $0.19)

FLEX July 18 calls (FLEX170721C00018000, $0.05, down $0.05)

Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Return: -88%
Stop Target: 5 cents (Stop Limit)

Action: The Stop Limit at 5 cents has tripped on today’s pullback.


STMicroelectronics (STM, $15.00, down $0.42)

STM October 20 calls (STM171020C00020000, $0.20, down $0.05)

Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -71%
Stop Target: 15 cents (Stop Limit)


STM July 17.50 calls (STM170721C00017500, $0.10, down $0.05)

Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -85%
Stop Target: 10 cents (Stop Limit)

Action: The Stop Limit at 10 cents on the July 17.50 has triggered on today’s pullback.

Additionally, sell to close the October 20 calls at current levels. Shares will need to run 33% higher from current levels to get “in-the-money”. While possible, we can revisit the story if momentum comes back into this stock.