MomentumOptions.com Pre-Market Update for 6/20/2017
Record Highs Back on the Map
The bulls stunned Wall Street, again, on Monday as the Dow and S&P 500 set all-time record highs with Tech and the small-caps recovering key resistance levels. The bears were nonexistent while they made it a three-day weekend and it’s too early to say a summer rally is coming early. However, follow through today could lead to continued upside on short-covering with some whipsaw action possible on the back half of the week.
The Dow danced 144 points, or 0.7%, to finish at 21,528. The blue-chips opened 60 points higher at 21,444 and went out at its all-time peak to clear resistance at 21,450-21,500. My February targets of Dow 22,000-22,250 are officially in play and are now just 2% away from tripping. Rising support is at 21,250-21,200.
The S&P 500 surged 20 points, or 0.8%, to close at 2,453. The index opened at 2,442 and only 4 points below its previous lifetime high while closing a half-point off its intraday top into the closing bell. My February targets for the S&P were pegged at 2,500-2,525 and represents fresh resistance. These levels are also 2%-3% from current levels. Support is at 2,440-2,435 with backup help at 2,425-2,420.
The Nasdaq zoomed 87 points, or 1.4%, to settle at 6,239. Tech opened just below 6,200 at 6,194 and a level that will try to serve as short-term support. A move below 6,175 would signal yesterday was a dead-cat bounce. Lower resistance at 6,250-6,300 was tested on the run to 6,243 with all-times highs back in action on a move above the latter.
The Russell 2000 rallied 11 points, or 0.8%, to end at 1,418. The small-caps battled resistance at 1,410-1,415 throughout the first half of trading before making a run to 1,420. Prior hurdles at 1,420-1,425 came into play during the second half with the lower end of the range holding into the close. There is no reason to short the index, or the market, until 1,395 cracks.
The S&P 500 Volatility Index ($VIX, 10.37, down 0.01) traded between 10.60-10.01. Resistance is at 11.50-12.50. Adjusted support is at 10-9.75.
I have raised the Stop Limit on FOLD with possible new trades coming today.
From desk to press, futures look like this: Dow (+22); S&P 500 (+2); Nasdaq 100 (+14).
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, $9.88, up $0.45)
FOLD July 9 calls (FOLD170721C00009000, $1.20, up $0.30)
Entry Price: $0.50 (6/15/2017)
Exit Target: $1.00-$1.50
Stop Target: 55 cents, raise to $1.05 (Stop Limit)
Action: Raise the Stop Limit from 55 cents to $1.05 to lock-in triple-digit profits.
Resistance is at $10.25-$10.50 following yesterday’s run to a fresh 52-week peak of $10.15. Continued closes above double-digits would be super bullish. Rising support is at $9.50-$9.25.
iPath S&P 500 VIX Futures (VXX, 12.58, down 0.41)
VXX August 14 calls (VXX170818C00014000, $0.85, down 0.25)
Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Stop Target: None
Action: Fresh support is at 12.50-12.25 with Monday’s test to a 52-week and multi-year low with the upper end triggering during the session. Resistance is at 12.75-13.