Mid-Market Update for 6/28/2017

Death-Cross in Gold Forming

2:00pm (EST)

The Spider Gold Shares (GLD) came into today’s session struggling to hold its 100-day moving average after closing a nickel below this level on Tuesday. The 50-day and 200-day moving averages are in downtrends with the possibility of a death-cross forming over the next 4-6 weeks. This pattern could be negated on a move above $120 and would be a bullish development.

The chart below shows current resistance at $119-$119.50 with today’s high at $119.31. Support is at $118-$117.75 with a move below the latter a bearish development that could possibly lead to $116 and mid-May support.

The 3-year weekly chart shows shares are trapped between the 50-day and 200-day moving averages with a possible death-cross more in focus. Again, a move above $120 would help but a possible longer-term recovery isn’t likely to happen until $122.50 is cleared, afterwards. A break below $117.50 would favor the bears for a possible drop to $116.25-$116.

Bearish traders can targets near-term and longer-term put options if $117.75-$117.50 failed this week, or next. The GLD July 117 puts (GLD170721P00117000, $0.50, down $0.05) look tempting and would double if GLD trades below $116, technically, by July 21st.

The GLD August 117 puts (GLD170818P00117000, $1.00, down $0.10) would double if GLD trades below $115, technically, by August 18th. These options would also provide an extra month of time for a trade to play out.

If $120 clears, I will update the outlook on GLD with possible call options.

Futures were rocky overnight and for much of the morning but were improving into the opening bell. The pressure abated shortly into the session with the bulls controlling much of today’s action.

The Dow is up 159 points to 21,470 while the S&P 500 is adding 22 points to 2,441. The Nasdaq is higher by 78 points to 6,224 and the Russell 2000 is gaining 21 points to 1,425.

I have updated our current trades and I’m still working on New Trades. I mentioned this morning the “stretch” would be very tricky to trade and that I didn’t want to get whipsawed out of positions. However, rest assured, I will send out a Trade Alert if I take action.


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, $9.71, down $0.01)

FOLD July 10 calls (FOLD170721C00010000, $0.50, flat)

Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Return: -29%
Stop Target: None

Action: Support is at $9.50-$9.25. Resistance is at $10-$9.75.


TherapeuticsMD (TXMD, $5.76, up $0.08)

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 is at $5.50. Near-term resistance is at $5.75-$6.


iPath S&P 500 VIX Futures (VXX, 12.28, down 0.40)

VXX August 14 calls (VXX170818C00014000, $0.65, down $0.20)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -46%
Stop Target: None

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