MomentumOptions.com Pre-Market Update for 7/25/2017
Nasdaq Sets Record High/ Profit Alert (CY)
The market traded mixed to start the week as Technology, Financials and Healthcare stocks edged higher. The Nasdaq set another record high while the broader market pulled back. Small-caps showed some strength as Wall Street awaits the heaviest volume of 2Q earnings season due out this week. In addition, the FOMC meeting that begins tomorrow has also caused some tentativeness.
The Dow fell 67 points, or 0.3%, to end at 21,513. The blue-chips closed in negative territory for the third-straight session following the backtest to 21,496 intraday. Fresh support at 21,400-21,350 held with a move below the latter being a bearish development. Resistance remains at 21,675-21,700 on a move back above 21,600.
The S&P 500 slipped 2 points, or 0.1%, to finish at 2,472. The index opened slightly lower at 2,472 while trading down to 2,466 intraday. Upper support at 2,460-2,450 easily held. The rebound to 2,473 and positive territory afterwards failed lower resistance at 2,475-2,500.
The Nasdaq gained 24 points, or 0.4%, to close at 6,410. Tech tested a low of 6,380 during the first half of action with the 7-point loss holding support at 6,350-6,325. Resistance at 6,400 and the all-time high of 6,398 was cleared following the record run to 6,417. Continued closes above the 6,400 keeps blue-sky territory open to 6,450-6,500.
The Russell 2000 added 2 points, or 0.2%, to settle at 1,438. The small-caps tested a low of 1,431 ahead of Wall Street’s lunch break with the 1,435 level holding into the closing bell. Support is trying to move up to 1,430-1,425 with a move below 1,420 a bearish signal. Resistance has moved down to 1,445-1,450.
The S&P 500 Volatility Index ($VIX, 9.43, up 0.07) held lower resistance at 10-10.50 following the morning pop to 9.97. Support is at 9.25-9 with an all-time intraday low of 9.26 getting tapped ahead of the closing bell.
I have a Profit Alert on CY following yesterday’s pullback.
From desk to press, futures look like this: Dow (-8); S&P 500 (-1); Nasdaq 100 (-6).
Momentum Options Play List
Closed Momentum Options Trades for 2017: 40-16 (71%). 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.
Imax (IMAX, $21.50, up $0.25)
IMAX August 21 puts (IMAX170818P00021000, $0.70, down $0.10)
Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Stop Target: None
Action: Upper Resistance at $21.75-$22 held on Monday’s run to $21.95. Support is at $21.25-$21.
Cypress Semiconductor (CY, $14.50, down $0.15)
CY August 15 calls (CY170818C00015000, $0.45, down $0.05)
Entry Price: $0.40 (7/12/2017)
Exit Target: $0.80
Stop Target: 42 cents (Stop Limit)
Action: The Stop Limit at 42 cents tripped on yesterday’s pullback as the puts kissed a low of 40 cents.
Wendy’s (WEN, $15.78, down $0.08)
WEN August 16 calls (WEN170818C00016000, $0.45, flat)
Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Stop Target: None
Action: Lower resistance at $16-$16.25 was tested with shares reaching $15.98 before pulling back. Support is at $15.75.
TherapeuticsMD (TXMD, $5.81, up $0.12)
TXMD August 7.50 calls (TXMD170818C00007500, $0.25, flat)
Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Stop Target: None
Action: Fresh resistance is at $6-$6.25 following Monday’s push to $6.12. Support is at $5.75-$5.50.
iPath S&P 500 VIX Futures (VXX, 11.02, down 0.18)
VXX August 14 calls (VXX170818C00014000, $0.15, down $0.05)
Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Stop Target: 10 cents (Stop Limit)
Action: Support is at 11. Resistance is at 11.25-11.50.