MomentumOptions.com Pre-Market Update for 6/16/2017
Bulls Hold Near-Term Support
The bears tried making another run at near-term support on Thursday’s open with the bulls holding fort. Although the session was a sea of red, the major indexes traded in an uptrend following the early morning lows to cut the initial losses by more than two-thirds. Today’s session could get a little spicy with regular June options expiring on today’s closing bell.
The Dow declined 14 points, or 0.1%, to settle at 21,359. The blue-chips tested a low of 21,261 shortly after the open with support at 21,200-21,100 holding for the 11th-straight session. Resistance remains at 21,450-21,500. Nike (NKE) weighed on the index as shares lost 3% after the company announced it was slashing its global workforce by 2%.
The S&P 500 slid 5 points, or 0.2%, to end at 2,432. The index opened at 2,424 and below near-term support at 2,425-2,420 with the low reaching 2,418 within the first half-hour of action. The rebound to 2,433 keeps lower resistance at 2,440-2,450 in the mix.
The Nasdaq declined 29 points, or 0.5%, to finish at 6,165. Tech bottomed at 6,107 in the opening pullback with crucial support at 6,100 holding for the third time in five sessions. The climb to 6,170 failed lowered resistance at 6,175-6,200.
The Russell 2000 fell 7 points, or 0.5%, to close at 1,410. The small-caps held lower support at 1,410-1,400 on the morning fade to 1,402. There is wiggle room to 1,395 on a move below the latter with risk to 1,375-1,370, if breeched. Fresh resistance is at 1,420-1,425.
The S&P 500 Volatility Index ($VIX, 10.90, up 0.26) closed higher for the third-straight session after peaking at 12.01 shortly after the opening bell. Resistance at 11.50-12.50 was split and levels that held into the closing bell. Support remains at 10.50-10.
I have set the parameters of our current trades so let’s go check them out. I’m still on the fence with Gold but I could have another New Trade today.
From desk to press, futures look like this: Dow (+28); S&P 500 (+3); Nasdaq 100 (+8).
Momentum Options Play List
Closed Momentum Options Trades for 2017: 37-15 (71%). 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.
Amicus Therapeutics (FOLD, $8.79, up $0.16)
FOLD July 9 calls (FOLD170721C00009000, $0.55, up $0.15)
Entry Price: $0.50 (6/15/2017)
Exit Target: $1.00-$1.50
Stop Target: None
Action: Near-term resistance is at $8.75-$9 with breakout potential to double-digits. Thursday’s high reached $8.98. Support is at $8.50-$8.25. The 52-week peak is at $9.61.
iPath S&P 500 VIX Futures (VXX, 13.09, up 0.17)
VXX August 14 calls (VXX170818C00014000, $1.15, up $0.07)
Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Stop Target: None
Action: Resistance is at 13.50 with yesterday’s high reaching 13.48. Support is at 13-12.75.