MomentumOptions.com Mid-Market Update for 7/11/2017

Gold Pushing $1,200 Level

1:30pm (EST)

Gold continues to tumble towards the $1,200 level after after double-topping at $1,300 in mid-April and early June. The yellow metal tested a low of $1,204 to start the week and again today.

A mini death cross is in the process of forming with the 50-day moving average on track to fall below the 100-day moving average on continued weakness. This is typically the start of a bearish setup that could lead to a tumble towards $1,180-$1,140 if $1,200 fails to hold over the near-term. This would violate the March lows on continued closes below this level.

The $1,220 area had been solid support since early May with $1,220-$1,225 now representing short-term resistance. A move back above $1,240-$1,250 and the 200-day moving average would help negate the current bearish setup.

The Spider Gold Shares (GLD) are in the same setup as Gold and could tumble to $112-$110 if $114 fails to hold in the coming weeks.

I have added the GLD August 115 puts (GLD170818P00115000, $1.23, down $0.10) to my Watch List for pending action but I want make sure $114 fails on consecutive days.

As far as the market, the session has been choppy with the action mixed. The Dow is off 8 points to 21,399 while the S&P 500 is sliding 5 points to 2,421. The Nasdaq is higher by a point to 6,177 and the Russell 2000 is adding 2 points to 1,411.

I have updated our current trades and I’m working on a new trade I hope to have ready ahead of the closing bell.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 39-15 (74%). 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, $24.58, down $0.31)

BAC August 25 calls (BAC170818C00025000, $0.57, down $0.16)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: -17%
Stop Target: None

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

 

AT&T (T, $36.67, down $0.16)

T August 37 puts (T170818P00037000, $0.78, up $0.05)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: 0%
Stop Target: None

Action: Support is at $36.75-$36.50. Resistance is at $37.25-$37.50.

 

TherapeuticsMD (TXMD, $5.09, up $0.29)

TXMD August 7.50 calls (TXMD170818C00007500, $0.40, up $0.05)

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

Action: Resistance is at $5-$5.25. Support is at $4.75 and the 50-day moving average.

 

iPath S&P 500 VIX Futures (VXX, 12.91, up 0.15)

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

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

Action: Resistance is at 13.25-13.50. Support is at 12.75-12.50.