Mid-Market Update for 7/7/2017

Bulls Pushing for Weekly Win

1:35pm (EST)

The choppy week has continued ahead of next week’s start of 2Q earnings season with the bulls controlling much of today’s session. This morning’s job numbers came in better than expected and has helped sentiment as traders look for new action. Below are the levels the bulls need to recover ahead of the weekend to get the weekly win and momentum back on their side.

Dow – 21,349
S&P – 2,423
Nasdaq – 6,140
Russell – 1,415

There are a number of major Financial companies reporting next Friday and an area I will cover in Monday’s update. The following week will set the pace for a possible return to all-time across the board, or, a continued pullback for the market.

The clues have favored the bears this week lower lows still in play but I often mention there is stretch or play in the indexes and the VIX that can often trick traders. Tech’s recent weakness is causing nervousness but we’ve penciled this in along with a possible backtest to the 100-day moving average.

While I have been clamoring to open fresh index trades, the whipsaw action has been a very difficult trading environment and why I’m still sticking with certain sectors and stocks. When a clearer trend emerges, for the market as a whole, index trades will still be there.

While this month has been a little slower than June’s fast-paced action, I still like all of our positions and I do expect to add a number of new trades in the coming weeks. I have been building a massive Watch List and I will cover some of the names I’m looking at on Monday, as well.

Turning our focus to the indexes, the Dow is higher by 92 points to 21,412 while the S&P 500 is gaining 15 points to 2,425. The Nasdaq is adding 65 points to 6,155 and the Russell 2000 is up 12 points to 1,413.

I have updated our current trades and I will be watching the action into the close, as usual. If I see something I like, or any action is needed, I will send out a Trade Alert. Otherwise, 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.


Bank of America (BAC, $24.90, up $0.19)

BAC August 25 calls (BAC170818C00025000, $0.78, up $0.06)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: 4%
Stop Target: None

Action: Resistance is at $25-$25.25. Support is at $24.75-$24.50.


AT&T (T, $36.97, down $0.21)

T August 37 puts (T170818P00037000, $0.80, up $0.05)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: 3%
Stop Target: None

Action: Fresh support is at $36.750-$36.50. The 52-week low is at $36.10. Lowered resistance is at $37-$37.25.


Amicus Therapeutics (FOLD, $10.48, down $0.06)

FOLD July 10 calls (FOLD170721C00010000, $0.90, flat)

Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Return: 29%
Stop Target: 73 cents (Stop Limit)

Action: Resistance is at $10.75-$11. Support is at $10.25.


TherapeuticsMD (TXMD, $5.09, up $0.49)

TXMD August 7.50 calls (TXMD170818C00007500, $0.45, up $0.15)

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

Action: Resistance is at $5-$5.25. Support is at $4.50-$4.25.


iPath S&P 500 VIX Futures (VXX, 13.16, down 0.40)

VXX August 14 calls (VXX170818C00014000, $1.00, down $0.20)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -17%
Stop Target: None

Action: Support is at 13.25-13. Resistance is at 13.75-14.