Pre-Market Update for 7/21/2017

Nasdaq Up 10-Straight Sessions

8:00am (EST)

The markets finished mixed on Thursday with Tech showing strength. The Nasdaq extended its win streak to 10-straight with the index setting another record high. The S&P 500 and Russell 2000 also set lifetime highs, intraday, while the Dow lagged. The Financial sector was slightly weaker with a number of the big-cap banking stocks struggling to hold their 50-day moving averages.

The Dow dipped 29 points, or 0.1%, to close at 21,611. The blue-chips made a 21-point run to 21,661 on the open with lower resistance at 21,675-21,700 holding for the fourth time in the past five sessions. Near-term support at 21,600-21,550 held on the intraday low of 21,576.

The S&P 500 slipped less than a half-point, or 0.02%, to settle at 2,473. The index tested another all-time high north of 2,477 to clear lower resistance at 2,475-2,500 but a level that failed to hold. Rising support at 2,460-2,450 easily held on the 5-point slid to 2,468.

The Nasdaq climbed nearly 5 points, or 0.1%, to end at 6,390. Tech opened 11 points higher at 6,396 while tapping out at 6,398 shortly afterwards. Resistance at 6,450-6,500 is still in play on continued closes above the 6,400 level. Support remains at 6,325-6,300.

The Russell 2000 advanced a half-point, or 0.04%, to finish at 1,442. The small-caps traded down to 1,438 intraday with the 1,435 level holding. Support is at 1,425-1,420, if breached. The rebound to a record high of 1,445 keeps 1,450-1,460 play.

The S&P 500 Volatility Index ($VIX, 9.58, down 0.21) topped out at 10.28 an hour into trading to split resistance at 10-10.50. The late day low reached support at 9.50 with a move below this level getting fresh 52-week and multi-year lows in play.

From desk to press, futures look like this: Dow (-1); S&P 500 (+1); Nasdaq 100 (-9).


Momentum Options Play List

Closed Momentum Options Trades for 2017: 40-15 (73%). 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, $14.92, up $0.33)

CY August 15 calls (CY170818C00015000, $0.65, up $0.10)

Entry Price: $0.40 (7/12/2017)
Exit Target: $0.80
Return: 62%
Stop Target: None

Action: Shares traded to a high of $14.92 on Thursday. Upper resistance at $14.75-$15 held with the 52-week high at $14.98. Continued closes above $15 could lead to a breakout to $16.50-$17 over the near-term. Support is trying to move up to $14.75-$14.50.


Wendy’s (WEN, $15.84, up $0.19)

WEN August 16 calls (WEN170818C00016000, $0.45, flat)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: 0%
Stop Target: None

Action: Lowered resistance at $15.75-$16 was cleared on yesterday’s run to $15.93. Support is at $15.50-$15.25.


Bank of America (BAC, $23.94, down $0.12)

BAC August 25 calls (BAC170818C00025000, $0.17, down $0.03)

Entry Price: $0.75 (7/3/2017)
Exit Target: $1.50
Return: -77%
Stop Target: 10 cents (Stop Limit)

Action: Support is at $23.75-$23.50. Yesterday’s low reached $23.83. Resistance is at $24-$24.25.


TherapeuticsMD (TXMD, $5.37, up $0.02)

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 at $5.50 held on Thursday’s push to $5.54. Support is at $5.25-$5.


iPath S&P 500 VIX Futures (VXX, 11.32, down 0.12)

VXX August 14 calls (VXX170818C00014000, $0.25, down $0.05)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -79%
Stop Target: 10 cents (Stop Limit)

Action: Set a Stop Limit at 10 cents.

Fresh support is at 11.25-11. Resistance is at 11.50-11.75.