MomentumOptions.com Pre-Market Update for 8/15/2017
Small-Caps Lead Rebound
The market traded higher for the second-straight session to push resistance that served as prior support. The small-caps showed the most strength but the Russell 2000 fell just shy of recovery its 100-day moving average. Tech soared past its 50-day moving average to recover last Thursday’s losses while regaining early July support levels.
The Dow jumped 135 points, or 0.6%, to settle at 21,993. The blue-chips held positive territory throughout the session while trading to a high of 22,019. Lower resistance at 22,000-22,100 held with a move above the latter being a bullish development. Support remains at 21,800 with 21,600-21,550 serving as backup.
The S&P 500 soared 24 points, or 1%, to end at 2,465. The index tested a high of 2,468 intraday with prior resistance at 2,470-2,475 holding. Fresh support is at 2,450-2,445.
The Nasdaq zoomed 83 points, or 1.3%, to finish at 6,340. Tech made a steady run to 6,346 ahead of the closing bell with resistance at 6,350-6,400 holding. Support has moved up to at 6,300-6,275 with a move below the latter proving Monday to be a dead-cat bounce.
The Russell 2000 surged 20 points, or 1.5%, to close at 1,394. The small-caps went out right at their session high but failed resistance at 1,395-1,400. A move above the latter would be a bullish development for possible further gains up to 1,410-1,415. Support is at 1,380-1,375 with a move below 1,370 being another warning sign.
The S&P 500 Volatility Index ($VIX, 12.33, down 3.18) sank 20% to close back below 15, and more importantly, the 12.50 level. The 200-day moving average held on the low of 12.06 with new support at 11.50-11.25 and the 100-day moving average.
I should have 1-2 trades ready this afternoon if the bulls can keep their current momentum. However, I want to confirm a bullish trend continues given the whipsaw action this month. I also have bearish trades ready on another breakdown.
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: 43-19 (69%). 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, $18.50, up $0.05)
TIVO October 20 calls (TIVO171020C00020000, $0.65, flat)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Resistance is at $18.50-$18.75 with Monday’s high tapping $18.67. Support is at $18-$17.75.
3D Systems (DDD, $12.78, up $0.02)
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: Yesterday’s high reached $12.99 with upper resistance at $12.75-$13 holding. Support is at $12.50-$12.25.