MomentumOptions.com Pre-Market Update for 8/17/2017
Dow Up Four-Straight
The market traded higher on Wednesday as the major indexes continue to work the way towards prior resistance levels. The losses from last Thursday’s pullback have been recovered, excluding the small-caps, and is a slightly bullish sign. The Dow closed higher for the fourth-straight session but the Russell 2000 is still trying to recover its 100-day moving average. Most sectors traded higher with the exception of energy and a slight dip in the financials.
The Dow advanced 25 points, or 0.1%, to end a shade under 22,024. The blue-chips held positive territory throughout the session while reaching a peak of 22,085. Upper resistance at 22,000-22,100 held with a move above the latter a bullish development. Support is at 21,800-21,750.
The S&P 500 added 3 points, or 0.1%, to finish at 2,468. The index traded to a high north of 2,474 with upper resistance at 2,470-2,475 holding by less than a tenth-point. The intraday low reached 2,463 on the Fed minutes with support at 2,460 holding on the 1-point dip.
The Nasdaq gained 12 points, or 0.2%, to close at 6,345. Tech tested a midday high of 6,374 to split resistance at 6,350-6,400. The backtest to 6,330 easily held support at 6,300-6,275.
The Russell 2000 climbed a third-point, or 0.02%, to settle at 1,383. The small-caps made a run to 1,391 intraday with resistance at 1,395-1,400 holding for the third-straight session. Upper support at 1,380-1,375 held on the backtest to 1,381 afterwards.
The S&P 500 Volatility Index ($VIX, 11.74, down 0.30) traded to a high of 12.54 shortly after the open with lower resistance at 12.50-13.50 getting breached. Lower support at 11.50-11.25 was nearly cleared on the fade to 11.25.
From desk to press, futures look like this: Dow (-18); S&P 500 (-3); Nasdaq 100 (-12).
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.
Intel (INTC, $35.81, down $0.19)
INTC October 37 calls (INTC171020C00037000, $0.48, down $0.11)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Stop Target: None
Action: Yesterday’s low reached $35.56. Support is at $35.75-$35.50. Resistance is at $36.25-$36.50.
TiVo (TIVO, $18.50, up $0.20)
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 Wednesday’s peak reaching $18.65. Support is at $18-$17.75.
3D Systems (DDD, $12.55, up $0.19)
August 16 puts (DDD170818P00016000, $3.50, down $0.10)
Entry Price: $0.55 (8/2/2017)
Exit Target: $4 (Limit Order) (closed half @ $1.10 on 8/3/2017)
Return: 300% ($2.30 current avg. closing price)
Stop Target: $3.40 (Stop Limit)
Action: Resistance is at $12.75 with yesterday’s high tapping $12.60. Support is at $12.25.