Pre-Market Update for 7/19/2017

Nasdaq On 8-Session Win Streak

8:00am (EST)

The market ended mixed on Tuesday following the abandonment of the Affordable Care Act healthcare reform. Earnings from the Financial companies topped expectations but pulled back as the sector finished lower. Tech set an all-time high to keep the overall market losses in check.

The Dow fell 55 points, or 0.3%, to end at 21,574. The blue-chips traded in negative territory throughout the session with the low coming in at 21,471. Support at 21,400-21,350 held with additional help at 21,200-21,150. Short-term resistance is at 21,675-21,700 with fluff to 21,800-22,000 on a move above the latter.

The S&P 500 added over a point, or 0.1%, to finish at 2,460. The index tested a low of 2,450 shortly after the open with upper support at 2,450-2,445 holding. The rebound to nearly 2,461 fell way shy of resistance at 2,475-2,500.

The Nasdaq jumped 29 points, or 0.5%, to close at 6,344. Tech was slightly weak at the start trading with the low reaching 6,291. Support at 6,300-6,250 held before a steady run to a fresh all-time high of 6,344 into the closing bell. It was the 8th-straight win for the index. Continued closes above resistance at 6,350-6,375 could lead to a run towards 6,450-6,500.

The Russell 2000 slipped 4 points, or 0.3%, to settle at 1,427. The small-caps also saw red throughout Tuesday with the bottom reaching 1,422. Support at 1,425-1,420 held into the closing bell. A close below 1,415 would be a bearish development. Lowered resistance is at 1,435-1,440.

The S&P 500 Volatility Index ($VIX, 9.95, up 0.13) tested a high of 10.35 intraday with resistance at 10.50-10.75 holding. Support at 9.50 held on the session low of 9.66.

I have raised the Stop Limit on T to further protect profits. I have also set a Stop Limit on BAC.

From desk to press, futures look like this: Dow (+3); S&P 500 (+2); Nasdaq 100 (+18).


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.


Cypress Semiconductor (CY, $14.44, up $0.15)

CY August 15 calls (CY170818C00015000, $0.55, up $0.05)

Entry Price: $0.40 (7/12/2017)
Exit Target: $0.80
Return: 38%
Stop Target: None

Action: Lower resistance at $14.50-$14.75 held on Tuesday’s run to $14.48. Support is at $14.25-$14.


Wendy’s (WEN, $15.44, down $0.22)

WEN August 16 calls (WEN170818C00016000, $0.40, down $0.05)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -11%
Stop Target: None

Action: Support at $15.50-$15.25 was split following yesterday’s low of $15.37. Resistance remains at $15.75-$16.


Bank of America (BAC, $23.90, down $0.12)

BAC August 25 calls (BAC170818C00025000, $0.20, down $0.10)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: -73%
Stop Target: 10 cents (Stop Limit)

Action: Set a Stop Limit at 10 cents.

Support is at $23.75-$23.50 with Tuesday’s low tapping $23.61. Resistance is at $24-$24.25.


AT&T (T, $35.99, down $0.40)

T August 37 puts (T170818P00037000, $1.35, up $0.25)

Entry Price: $0.78 (6/29/2017)
Exit Target: $1.60
Return: 73%
Stop Target: $1.05, raise to $1.20 (Stop Limit)

Action: Raise the Stop Limit from $1.05 to $1.30.

Fresh support is at $35.75-$35.50 with yesterday’s low reaching $35.87 and fresh 52-week low. Resistance is at $36-$36.25.


TherapeuticsMD (TXMD, $5.26, flat)

TXMD August 7.50 calls (TXMD170818C00007500, $0.25, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -50%
Stop Target: None

Action: Resistance is at $5.50 with Tuesday’s high reaching $5.45. Support is at $5.25-$5.


iPath S&P 500 VIX Futures (VXX, 11.54, down 0.16)

VXX August 14 calls (VXX170818C00014000, $0.30, down $0.05)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -75%
Stop Target: None

Action: Support is at 11.50-11.25. Resistance is at 11.75-12.