Pre-Market Update for 7/6/2017

Tech Holds 6,150 Level

8:00am (EST)

The major indexes were choppy throughout Wednesday’s action and ahead of the Fed minutes but traded higher once the news was digested. Tech led the gains with the blue-chips struggling after setting a fresh all-time high on Monday.

The Dow slipped a point, or 0.01%, to close at 21,478. The blue-chips started the session higher at 21,492 but struggled with lower resistance at 21,500-21,600 while peaking at 21,505 shortly afterwards. The fade to 21,404 held support at 21,300-21,250 with risk to 21,100-21,000 and the 50-day moving average on a move below the latter. RSI is at the 60 level and is showing a neutral reading.

The S&P 500 added 3 points, or 0.2%, to finish at 2,432. The index traded to a low of 2,422 during the opening half hour with lower support at 2,425-2,420 holding. There is risk to 2,410-2,400 and the 50-day moving average on a move below the latter. Resistance at 2,440-2,450 was split following the rebound just south of 2,435 after the Fed minutes and has now held for 11 straight sessions. RSI is above the 50 level and is an uptrend.

The Nasdaq jumped over 40 points, or 0.7%, to settle at 6,150. Tech was slightly weak on the open after falling 10 points to 6,100. Lower support at 6,125-6,100 held with a move below 6,075 being a bearish development. Lower resistance at 6,175-6,200 challenged following the run to 6,163 during the second half of action. The close above the 6,150 level was slightly bullish although the failure to hold the 50-day moving average into the close remains a concern. RSI is improving and is in the mid-40’s following the backtest to the lower 40’s throughout June.

The Russell 2000 gave back 6 points, or 0.5%, to end at 1,420. The small-caps traded in negative territory throughout the session with the low reaching 1,412. Upper support at 1,410-1,400 held with a move below 1,395 being a yellow flag. Resistance remains at 1,425-1,430 with a close above the latter a bullish sign. RSI is in the mid-50’s but is in a slight downtrend.

The S&P 500 Volatility Index ($VIX, 11.03, down 0.19) traded to a high of 12.03 on the morning market weakness while splitting resistance at 11.50-12.50. Support at 10-9.75 easily held following the late day dip to 10.79.

From desk to press, futures look like this: Dow (-2); S&P 500 (-1); Nasdaq 100 (-14).

Here is a snapshot of the closed trades year-to-date. I’m working on updating a few more trades over the next few days but I wanted to get this out. This is a sample portfolio as some traders may take smaller or larger positions.


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.


Bank of America (BAC, $24.92, up $0.24)

BAC August 25 calls (BAC170818C00025000, $0.80, up $0.10)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: 7%
Stop Target: None

Action: Upper resistance at $24.75-$25 was nearly cleared following Wednesday’s push to $24.95. Support is at $24.50-$24.25.


AT&T (T, $38.12, up $0.01)

T August 37 puts (T170818P00037000, $0.57, down $0.03)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: -27%
Stop Target: None

Action: Yesterday’s low reached $37.85 with support at $38-$37.75 holding. Resistance is at $38.25-$38.50.


Amicus Therapeutics (FOLD, $10.29, up $0.21)

FOLD July 10 calls (FOLD170721C00010000, $0.65, up $0.10)

Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Return: -7%
Stop Target: None

Action: Shares traded to a high of $10.38 while closing above lower resistance at $10.25-$10.50. A move above the latter gets fresh 52-week highs in play. Support is trying to move up to $10-$9.75.


TherapeuticsMD (TXMD, $5.37, down $0.08)

TXMD August 7.50 calls (TXMD170818C00007500, $0.40, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -20%
Stop Target: None

Action: Lower resistance at $5.50-$5.75 and the 100-day moving average held on the run to $5.50 yesterday. Support remains at $5.25-$5 following the morning fade to $5.22.


iPath S&P 500 VIX Futures (VXX, 12.92, up 0.02)

VXX August 14 calls (VXX170818C00014000, $0.90, down $0.10)

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

Action: Upper resistance at 13-13.50 held following the morning pop to 13.30. Support remains at 12.75-12.50.