MomentumOptions.com Mid-Market Update for 7/27/2017

Gold Hits 6-Week High

1:55pm (EST)

Commodities have been rebounding of late with Gold getting a nice pop in recent weeks. The yellow metal has been struggling to clear the $1,260 level but did so today before pulling back. Continued closes above $1,260 would be a bullish sign for another possible run at $1,300.

While the short-term outlook is playing out, the longer-term outlook would be what happens if $1,300 does come into play on a triple-top formation. The 50/100-day moving averages are turning higher so there could be a bullish trade from $1,260-$1,300 over the near-term.

As far as the market, the bulls pushed record highs during the first half of action but the sudden reversal is a concern going into the closing bell.

The Dow is up 12 points to 21,723 while the S&P 500 is down 12 points to 2,465. The Nasdaq is sinking 78 points to 6,344 and the Russell 2000 is off 13 points to 1,427.

I have updated our current trades so let’s go check the tape. I could have a new trade ahead of the close so stay locked-and-loaded.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 41-16 (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.

 

Alcoa (AA, $36.15, down $0.48)

AA August 39 calls (AA170818C00039000, $0.30, down $0.10)

Entry Price: $0.55 (7/25/2017)
Exit Target: $1.10
Return: -36%
Stop Target: None

Action: Support is at $36-$35.75. Resistance is at $36.50-$36.75.

 

Imax (IMAX, $20.62, down $1.23)

IMAX August 21 puts (IMAX170818P00021000, $0.90, up $0.25)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: 17%
Stop Target: None

Action: Fresh support is at $20.50-$20. Resistance is at $20.75-$21.

 

Wendy’s (WEN, $15.82, down $0.01)

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: Support is at $15.75. Resistance is at $16-$16.25.

 

TherapeuticsMD (TXMD, $5.67, down $0.23)

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: Support is at $5.75-$5.50. Resistance is at $6-$6.25.

 

iPath S&P 500 VIX Futures (VXX, 11.43, up 0.44)

VXX August 14 calls (VXX170818C00014000, $0.30, up $0.15)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -75%
Stop Target: 10 cents (Stop Limit)

Action: Support is at 11. Resistance is at 11.25-11.50.