Mid-Market Update for 8/9/2017

Near-Term Support in Play

1:55pm (EST)

The bears are showing signs of life as they look for their second-straight win in an attempt to crack near-term support. The slight selling pressure from yesterday has the bulls on defense but the indexes have stayed in a relatively narrow range.

Aside from Retail earnings being in focus, Wall Street seems cautious as they watch for additional headlines regarding North Korea’s nuclear threats and President Trump’s increasingly strong responses. The market hates uncertainty but in today’s face paced world, the trend will be in place before the suit-and-ties know how to react.

I have talked about the trading range on the S&P 500 and how the small-caps need to hold the 1,400 level on a pullback. I also mentioned the VIX needed to close above 11.50 along with a few other indicators before we start to get aggressively short. We could get this signal today or by the end of the week.

The good news is the portfolio is light and has been on a roll since mid-June. There are only four open trades with three of them likely closing this week. I will be sending the updated portfolio of all closed over the next few days and I’ve been super busy building out the Watch List for our next 5-10 trades.

The Dow is down 58 points to 22,027 while the S&P 500 is sliding 4 points to 2,470. The Nasdaq is lower by 25 points to 6,345 and the Russell 2000 is falling 10 points to 1,399.

Stay locked-and-loaded into the closing bell in case I take action. In the meantime, let’s go check on the current trades.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 43-17 (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.


TiVo (TIVO, $18.55, up $0.20)

TIVO October 20 calls (TIVO171020C00020000, $0.80, up $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: 14%
Stop Target: None

Action: Resistance is at $18.75-$19. Support is at $18.25-$18.


3D Systems (DDD, $12.61, down $0.08)

August 16 puts (DDD170818P00016000, $3.30, flat)

Entry Price: $0.55 (8/2/2017)
Exit Target: $4 (Limit Order) (closed half @ $1.10 on 8/3/2017)
Return: 300% ($2.20 current avg. closing price)
Stop Target: $2.50, raise to $2.80 (Stop Limit)

Action: Support is at $12.50-$12.25. Resistance is at $12.75-$13.


Wendy’s (WEN, $15.74, up $0.52)

WEN August 16 calls (WEN170818C00016000, $0.20, flat)

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

Action: Resistance is at $15.75-$16. Support is at $15.50-$15.25.


TherapeuticsMD (TXMD, $5.46, up $0.12)

TXMD August 7.50 calls (TXMD170818C00007500, $0.10, flat)

Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Return: -80%
Stop Target: None

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