Mid-Market Update for 8/14/2017

Earnings for the Week

2:55pm (EST)

Second-quarter earnings season is still in swing although the pace will dramatically start to slow in the coming weeks. September will offer earnings from companies with different fiscal years up until the start of 3Q earnings season in October.

Famous Dave’s of America (DAVE) and Photronics (PLAB) will announce numbers after today’s closing bell.

Advance Auto Parts (AAP), Coach (COH), Dick’s Sporting Goods (DKS), TJX Companies (TJX), Urban Outfitters (URBN) and Viavi Solutions (VIAV) report on Tuesday.

Wednesday’s highlights include Cisco Systems (CSCO), L Brands (LB), NetApp (NTAP), Synopsys (SNPS) and Target (TGT).

Alibaba (BABAA), Applied Materials (AMAT), Buckle (BKE), Gap (GPS), Madison Square Garden (MSG), Ross Stores (ROST) and Wal-Mart Stores (WMT) will confess results on Thursday.

The week wraps up with Deere & Company (DE), Footlocker (FL) and Estee Lauder (EL) reporting earnings ahead of Friday’s open.

I mentioned this morning the number of S&P 500 stocks trading above their 50-day moving average was just above 40% and that there could be a market recovery, quickly, if the previous two patterns from this year played out. With futures showing a strong open throughout the night, the odds were good the bulls were going to come out pushing lowered resistance that served as prior support.

The gains have held heading into the final hour of action with volatility back below the 15 level. The Dow is advancing 126 points to 21,984 while the S&P 500 is up 22 points to 2,463. The Nasdaq is higher by 75 points to 6,332 and the Russell 2000 is gaining 19 points to 1,393.

I have updated our current trades so let’s go check the tape.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 43-19 (68x%). 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, $18.57, up $0.12)

TIVO October 20 calls (TIVO171020C00020000, $0.65, flat)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -7%
Stop Target: None

Action: Resistance is at $18.50-$18.75. Support is at $18-$17.75.


3D Systems (DDD, $12.72, down $0.04)

August 16 puts (DDD170818P00016000, $3.20, flat)

Entry Price: $0.55 (8/2/2017)
Exit Target: $4 (Limit Order) (closed half @ $1.10 on 8/3/2017)
Return: 291% ($2.15 current avg. closing price)
Stop Target: $3 (Stop Limit)

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