Mid-Market Update for 6/19/2017

Bulls Trying to Buck History

2:10pm (EST)

I often say one day doesn’t make a trend…

Futures were a strong green ahead of Wall Street waking up this morning despite in what is typically a bearish week following June expirations. However, today’s session on the Almanac calendar had a bull running on it but a bear on the back end for Friday’s session. Ah, a good hedge bet that I have been warning you with the whipsaw action from two Friday’s ago on the Nasdaq’s 180-degree off the all-time high.

The giddy open is good to see and keeps the slick talking pros confused and the talking heads cheerleading. Everyone’s mood could change by tomorrow, or at some point this week, if near-term resistance levels hold. I’ve learned to keep my emotions shelved when it comes to trading.

Option trading keeps you even more focused because you are on a much tighter schedule with strict time premiums. The current portfolio has a July and August play that is good to start our next major batch of trades. I try to average 1-2 trades per week but if major support, or resistance, levels are breached then we could have some heavy action. My max number of trades are between 10-12.

I also want to be careful in not opening too many July trades as the regular July options expire in just over a month with a holiday coming up in a couple of weeks. This means trading could get whacky on light volume as the July 4th holiday is on a Tuesday. However, for quick index trades, July options will work the best with better returns than August calls or puts.

Given the game plan and the way we are positioned, we have the luxury to let the action come to us. Heading into the second half of trading, the Dow is up 122 points to 21,506 while the S&P 500 is adding 17 points to 2,450. The Nasdaq is higher by 8 points to 6,235 and the Russell 2000 is rocking a 12-pack to 1,419.

I could pull the trigger on a New Trade ahead of the close as I still have a number of other short-term trades I’m watching aside from an index trade. In the meantime, let’s go check on the current action.


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, $10.13, up $0.70)

FOLD July 9 calls (FOLD170721C00009000, $1.35, up $0.45)

Entry Price: $0.50 (6/15/2017)
Exit Target: $1.00-$1.50
Return: 170%
Stop Target: 55 cents (Stop Limit)

Action: Fresh resistance is at $10.25-$10.50. Rising support is at $9.50-$9.25.


iPath S&P 500 VIX Futures (VXX, 12.59, down 0.40)

VXX August 14 calls (VXX170818C00014000, $0.85, down 0.25)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -29%
Stop Target: None

Action: Support is at 12.50-12.25. Resistance is at 12.75-13.