Pre-Market Update for 8/2/2017

Small-Caps End Four-Session Slide

8:00am (EST)

The market traded higher on Tuesday with the Dow leading the way after setting another all-time high. The S&P 500 cleared near-term resistance in the process with Tech and the small-caps trying to build new bases of support following the recent pullbacks. Oil has rallied over the past two weeks but fell 2% to close back below $50 per barrel.

The Dow jumped 72 points, or 0.3%, to finish at 21,963. The blue-chips traded opened 70 points higher at 21,961 while reaching a record peak of 21,990. Upper resistance at 21,900-22,000 held with room to run to 22,250, if cleared. Rising support is at 21,800-21,700.

The S&P 500 gained 6 points, or 0.2%, to close at 2,476. The index held positive territory throughout the session while trading to a high of 2,478. Resistance at 2,485-2,500 held for the 6th-straight session. Support remains at 2,460-2,450 with backup help is at 2,440-2,435 and the 50-day moving average.

The Nasdaq advanced 14 points, or 0.2%, to settle at 6,362. Tech traded to a high of 6,375 on the open with resistance at 6,400-6,425 easily holding. Fresh support at 6,325-6,275 held on the backtest to 6,345 with a move below 6,250 and the 50-day moving average a bearish development.

The Russell 2000 climbed 3 points, or 0.2%, to end at 1,428. The small-caps also reached their peak of 1,430 shortly after the start of trading with resistance at 1,435-1,440 holding. Lower support at 1,425-1,420 held for the second-straight session on the low.

The S&P 500 Volatility Index ($VIX, 10.09, down 0.17) tested a morning high of 10.56 with lower resistance at 10.50-11.50 holding. Upper support at 10-9.50 was breached on the low of 9.95.

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, $36.38, down $0.02)

AA August 39 calls (AA170818C00039000, $0.25, down $0.05)

Entry Price: $0.55 (7/25/2017)
Exit Target: $1.10
Return: -55%
Stop Target: None

Action: Upper support at $36-$35.75 held with yesterday’s low tapping $35.91. Resistance is at $36.50-$37.


Imax (IMAX, $22.05, up $0.65)

IMAX August 21 puts (IMAX170818P00021000, $0.35, down $0.20)

Entry Price: $0.78 (7/21/2017)
Exit Target: $1.60
Return: -55%
Stop Target: None

Action: Upper resistance at $21.75-$22 was cleared on the run to $22.25 yesterday. Support is at $21.25-$21.


Wendy’s (WEN, $15.41, down $0.03)

WEN August 16 calls (WEN170818C00016000, $0.25, flat)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -44%
Stop Target: None

Action: Shares tested a low of $15.24 on Tuesday. Support is at $15.25-$15. Resistance is at $15.50-$15.75.


TherapeuticsMD (TXMD, $5.44, down $0.21)

TXMD August 7.50 calls (TXMD170818C00007500, $0.20, down $0.05)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -60%
Stop Target: None

Action: Upper support at $5.50-$5.25 failed to hold on yesterday’s trip to $5.34. Resistance is at $5.75-$6.


iPath S&P 500 VIX Futures (VXX, 11.05, down 0.18)

VXX August 14 calls (VXX170818C00014000, $0.11, down $0.04)

Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Return: -91%
Stop Target: 10 cents (Stop Limit)

Action: Support is at 11. Resistance at 11.25-11.50. The Stop Limit will likely trip today.