Mid-Market Update for 8/21/2017

Earnings for the Week

12:55pm (EST)

Total earnings for the members of the S&P 500 that have reported are up over 10% from the same period last year on nearly 6% higher revenues. The number of EPS beats is at pushing 75% with 68% topping revenue estimates.

The results from two-thirds of the Retail sector companies have been announced with total earnings for the sector up a dismal 0.1% on 6.4% higher revenues. The number of companies ahead of EPS estimates is at 77% with a surprisingly strong 85% beating revenue estimates.

Looking at Q2 as a whole, combining the actual results with estimates for the still-to-come announcements, total earnings are expected to be up 10% from the same period last year on 5% higher revenues. This would be the second quarter in a row of double-digit earnings growth performance for the S&P 500 index.

As far as this week’s earnings, there are a few stocks I’m watching for possible setups before, or after, earnings are announced.

After today’s close, Nordson (NDSN) and Premier (PINC) will announce their quarterly results.

American Woodmark (AMWD), Coty (COTY), Cree (CREE), DSW (DSW), Intuit (INTU), Toll Brothers (TOL) will report on Tuesday.

Wednesday’s action includes American Eagle Outfitters (ANF), Eaton Vance (EV), Lowe’s (LOW) and Royal Bank of Canada (RY).

Autodesk (ADSK), Broadcom (AVGO), Dollar Tree Stores (DLTR), GameStop (GME), OSI Systems (OSIS), Tiffany & Co. (TIF), Toro (TTC), Veeva Systems (VEEV) and VMware (VMW) confess their numbers on Thursday.

The week wraps up with Big Lots (BIG) reporting ahead of Friday’s open.

Heading into the second half of trading, the Dow is advancing 16 points to 21,692 while the S&P 500 is up 2 points to 2,429. The Nasdaq is off a point to 6,215 and the Russell 2000 is down 2 points to 1,355.

I’m working on a New Trade I hope to have ready by the closing bell. In the meantime, let’s go check on the current action.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 44-19 (70%). 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.


TherapeuticsMD (TXMD, $5.93, down $0.08)

TXMD December 7.50 calls (TXMD171215C00007500, $0.85, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -13%
Stop Target: None

Action: Support is at $6-$5.75. Resistance is at $6.50-$6.75.


Intel (INTC, $34.99, down $0.02)

INTC October 37 calls (INTC171020C00037000, $0.34, flat)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -37%
Stop Target: None

Action: Support is at $35-$34.75. Resistance is at $35.25-$35.50.


TiVo (TIVO, $18.45, up $0.35)

TIVO October 20 calls (TIVO171020C00020000, $0.55, flat)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -22%
Stop Target: None

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