Mid-Market Update for 6/23/2017

Banks Pass Stress Test

2:20pm (EST)

The bulls are on track for the weekly win despite weakness in the Financial stocks again today. The pullback in the sector is slightly surprising, given yesterday’s good news after the closing bell about the “stress test”.

The board of governors from the Federal Reserve System released results of its supervisory bank stress tests and found all 34 participating bank holding companies exceed the minimum requirements in the hypothetical stress scenario.

A number of the biggest financial institutions participated included Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), and Wells Fargo (WFC). All of the aforementioned stocks are lower with the exception of WFC which is seeing slight gains.

While this was an important event, the bigger news for the banks will be next week’s Comprehensive Capital Analysis and Review, or CCAR, announcements, which will determine how they can increase dividends and buy backs. I will be researching the sector this weekend for possible option trades.

As far as the market, the Dow is up 6 points to 21,403 while the S&P 500 is adding 5 points to 2,440. The Nasdaq is gaining 30 points to 6,267 and the Russell 2000 is higher by 8 points to 1,413.

I have updated our current trades so let’s go check the action. I doubt I will have a New Trade ahead of the closing bell although I’ve been looking at INTC. If you don’t hear from me again, we will try next week, so have a great and safe weekend.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 38-15 (72%). 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, $10.25, up $0.16)

FOLD July 10 calls (FOLD170721C00010000, $0.80, up $0.10)

Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Return: 14%
Stop Target: None

Action: Resistance is at $10.50-$10.75. Support is at $10-$9.50.


TherapeuticsMD (TXMD, $5.61, down $0.12)

TXMD August 7.50 calls (TXMD170818C00007500, $0.50, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: 0%
Stop Target: None

Action: Near-term resistance is at $5.75-$6 and the 200-day moving average. Support is at $5.50 and the 100-day moving average.


iPath S&P 500 VIX Futures (VXX, 12.51, down 0.14)

VXX August 14 calls (VXX170818C00014000, $0.80, down $0.05)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -33%
Stop Target: None

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