Pre-Market Update for 6/21/2017

Transports Take a Hit

8:00am (EST)

The market struggled keeping its momentum on Tuesday as the Transportation sector pulled back on lower oil prices. The sluggish session favored the bears despite higher highs but the closing action could signal a short-term top on the close below key levels of support.

The Dow fell 61 points, or 0.3%, to settle at 21,467. The blue-chips traded to a record high of 21,535 shortly after the opening bell with resistance at 22,000-22,250 holding. Fresh support at 21,250-21,200 is back in play with Tuesday’s low tapping 21,464.

The S&P 500 sank 16 points, or 0.7%, to end at 2,437. The index struggled in negative territory throughout the day after opening at 2,450. Lower support at 2,440-2,435 held but is fresh with risk to 2,425-2,420 on a move below the latter. Fresh resistance is at 2,500-2,525.

The Nasdaq tanked over 50 points, or 0.8%, to end at 6,188. Tech also bleed red throughout the session with the low kissing 6,186. The move below upper resistance at 6,200-6,175 was slightly bearish with additional pressure at 6,150-6,100. Lower resistance is at 6,200-6,250.

The Russell 2000 declined 15 points, or 1.1%, to finish just below 1,403. The small-caps were weak from the open and tested a low of 1,402. Lower support at 1,410-1,400 held with us possibly shorting the index on a move below 1,395. Resistance is at 1,410-1,415 followed by 1,420-1,425.

The S&P 500 Volatility Index ($VIX, 10.86, up 0.49) failed upper support at 10-9.75 on the intraday action to 10.24. Lower resistance at 11.50-12.50 came into play on the late day push to 11.15.

From desk to press, futures look like this: Dow (-13); S&P 500 (-4); 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, $9.55, down $0.33)

FOLD July 9 calls (FOLD170721C00009000, $1.10, down $0.20)

Entry Price: $0.50 (6/15/2017)
Exit Target: $1.00-$1.50
Return: 120%
Stop Target: $1.05 (Stop Limit)

Action: Upper support at $9.50-$9.25 held on the backtest to $9.47. Resistance is at $10-$10.25.


iPath S&P 500 VIX Futures (VXX, 12.91, up 0.33)

VXX August 14 calls (VXX170818C00014000, $0.90, up $0.05)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -25%
Stop Target: None

Action: Upper resistance at 12.75-13 held on the run to 12.97. Support is at 12.50-12.25.