Pre-Market Update for 8/1/2017

Dow Continues to Shine

8:00am (EST)

The market ended mostly lower on Monday with the Dow the lone exception. The index traded higher for the 5th-straight session while setting another all-time high. The Nasdaq and S&P 500 traded lower for the 3rd-straight session while the Russell 2000 is now on a four-session slide. Despite the end of July weakness, the major indexes posted their best month since February.

The Dow gained 60 points, or 0.3%, to end at 21,891. The blue-chips traded in positive territory throughout the session while reaching an all-time high of 21,929. Lower resistance at 21,900-22,000 was cleared but failed to hold. Support is at 21,700-21,600.

The S&P 500 slipped nearly 2 points, or 0.1%, to finish at 2,470. The index traded higher on the open while reaching a peak of 2,478. Lower resistance at 2,485-2,500 easily held before the fade to 2,468 shortly afterwards. Support remains at 2,460-2,450.

The Nasdaq fell 26 points, or 0.4%, to close at 6,348. Tech showed some strength at the start of trading while reaching a high pf 6,396. Lowered resistance at 6,400-6,425 was tested but failed to clear. The backtest to 6,338 and close below support at 6,375-6,350 was a slightly bearish development. Additional help is at 6,300-6,250 and the 50-day moving average.

The Russell 2000 declined 4 points, or 0.3%, to settle at 1,425. The small-caps opened slightly higher at 1,429 while making a 3-point run to 1,432. Resistance at 1,435-1,440 stood strong before the sudden reversal 1,420 an hour later. Lower support at 1,425-1,420 held with risk to 1,410 and the 50-day moving average on a close below the latter.

The S&P 500 Volatility Index ($VIX, 10.26, down 0.03) traded in another tight range with the morning high reaching 10.84. Lower resistance at 10.50-11.50 was stretched with a move above the latter a cause for concern. Support remains at 10-9.50.

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


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, $36.40, up $0.76)

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

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

Action: Fresh resistance is at $36.50-$37 following yesterday’s run to $36.44. Support is at $36-$35.75.


Imax (IMAX, $21.40, down $0.55)

IMAX August 21 puts (IMAX170818P00021000, $0.60, up $0.10)

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

Action: Yesterday’s low tapped $21.30. Support is at $21.25-$21. Resistance is at $21.75-$22.


Wendy’s (WEN, $15.44, down $0.10)

WEN August 16 calls (WEN170818C00016000, $0.25, down $0.05)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -46%
Stop Target: None

Action: Upper support at $15.25-$15 held on yesterday’s dip to $15.23. Resistance is at $15.50-$15.75.


TherapeuticsMD (TXMD, $5.65, up $0.03)

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 $5.75-$6. Support is at $5.50-$5.25.


iPath S&P 500 VIX Futures (VXX, 11.22, down 0.07)

VXX August 14 calls (VXX170818C00014000, $0.15, down $0.05)

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

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