MomentumOptions.com Pre-Market Update for 8/4/2017

Dow up 8-Straight

8:00am (EST)

The market was choppy again on Thursday despite the Dow closing higher for the 8th-straight session. Staples and Healthcare stocks showed strength while Energy and Materials stocks lagged. Some of the nervousness can be attributed to this morning’s jobs report as Wall Street awaits the numbers ahead of the open.

The Dow gained 9 points, or 0.04%, to settle at 22,026. The blue-chips traded down to 22,007 on the open with rising support at 22,000-21,800 holding. The run to a record high north of 22,044 fell shy of resistance and blue-sky territory to 22,200-22,250.

The S&P 500 fell 5 points, or 0.2%, to end at 2,472. The index traded in the red with the low reaching 2,468. Support at 2,465-2,460 held with a move below 2,450 a bearish development. Resistance remains at 2,485-2,500.

The Nasdaq dropped 22 points, or 0.4%, to finish at 6,340. Tech reached 6,368 shortly after the open with lowered resistance at 6,375-6,400 holding. Upper support at 6,325-6,275 held on the fade to 6,331.

The Russell 2000 sank 7 points, or 0.5%, to close at 1,405. The small-caps climbed 2 points to 1,414 on the open with resistance at 1,420-1,425 easily holding. Fresh support at 1,400-1,395 held on the intraday dip to 1,402.

The S&P 500 Volatility Index ($VIX, 10.44, up 0.14) traded between 10.60 and 9.90. Support is at 10-9.50. Resistance is at 10.50-11.50.

I have made some adjustments to our DDD position so let’s go check the details.

From desk to press, futures look like this: Dow (-2); S&P 500 (-1); Nasdaq 100 (+2).

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 42-17 (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.

 

3D Systems (DDD, $13.39, down $3.62)

August 16 puts (DDD170818P00016000, $2.60, up $2.00)

Entry Price: $0.55 (8/2/2017)
Exit Target: $1.10, raise to $3 (closed half @ $1.10 on 8/3/2017)
Return: 236% ($1.85 current avg. closing price)
Stop Target: $1.00, raise to $2.20 (Stop Limit)

Action: Raise the Exit Target from $1.10 to $3 on the other half of the trade. Raise the Stop Limit at $1.00 to $2.20.

Fresh support is at $13.25-$13. Resistance is at $13.50-$13.75. We are playing with house money so enjoy the ride!

 

Alcoa (AA, $37.09, down $0.19)

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

Entry Price: $0.55 (7/25/2017)
Exit Target: $1.10
Return: -45%
Stop Target: None

Action: Support is at $37-$36.50 with yesterday’s low tapping $36.94. Resistance is at $37.50-$37.75.

 

Wendy’s (WEN, $15.34, down $0.11)

WEN August 16 calls (WEN170818C00016000, $0.20, down $0.05)

Entry Price: $0.45 (7/12/2017)
Exit Target: $0.90
Return: -56%
Stop Target: None

Action: Support is at $15.25-$15. Resistance is at $15.50-$15.75.

 

TherapeuticsMD (TXMD, $5.26, down $0.31)

TXMD August 7.50 calls (TXMD170818C00007500, $0.20, flat)

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

Action: Support is at $5.25-$5. Resistance is at $5.50-$5.75.