Mid-Market Update for 6/27/2017

Alphabet Leads Tech Lower

3:05pm (EST)

The market was choppy during the first half of action after trading on both sides of the ledger. The bulls did well holding the narrow trading range but the action started favoring the bears following a delayed healthcare vote and concerns over Tech.

Shares of Alphabet (GOOGL) are down a 2% after the European Commission fined the company 2.42 billion euros for breaching antitrust rules. The EC claims Alphabet has abused its market dominance as a search engine by giving an illegal advantage to another Google product.

The company said it “respectfully” disagrees with the conclusions and will review the Commission’s decision in detail as it considers an appeal. Shares are currently holding the $950 level and have traded to a low of $948.

The Dow is down 33 points to 21,375 while the S&P 500 is off 9 points to 2,429. The Nasdaq is declining 65 points to 6,182 and the Russell 2000 is lower by 7 points to 1,409.

I have updated our current trades so let’s go check the tape. We are getting close to adding New Trades but I want to see how today’s close unfolds.


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, $9.85, down $0.19)

FOLD July 10 calls (FOLD170721C00010000, $0.55, down $0.05)

Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Return: -21%
Stop Target: None

Action: Support is at $9.75-$9.50. Resistance is at $10.25-$10.50.


TherapeuticsMD (TXMD, $5.62, down $0.07)

TXMD August 7.50 calls (TXMD170818C00007500, $0.45, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -10%
Stop Target: None

Action: Support at $5.50 stood strong on Monday’s dip to $5.58. Near-term resistance remains at $5.75-$6.


iPath S&P 500 VIX Futures (VXX, 12.49, up 0.22)

VXX August 14 calls (VXX170818C00014000, $0.75, up $0.10)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -38%
Stop Target: None

Action: Lower support at 12.50-12.25 was tested on the session low. There is continued help at 12-11.75 on continued weakness. Lowered resistance is at 12.50-12.75.