Pre-Market Update for 8/22/2017

Mixed Session Could Signal Near-Term Bounce/ Important Notice

8:00am (EST)

The market closed mixed to start the week with the Dow holding its 50-day moving average on a late day rebound to close in positive territory. The S&P 500 edged higher but failed in its effort to recover its 50-day MA after falling below this level last Thursday. The Nasdaq also fell below its 50-day MA late last week while the Russell 2000 tumbled below its 200-day MA. Both indexes remained there after finishing slightly lower.

The Dow gained 29 points, or 0.1%, to close at 21,703. The blue-chips traded down to upper support at 21,600-21,550 on the intraday low to breach its 50-day moving average. There is additional help at 21,400-21,350 on a move below the latter. Near-term resistance at 21,750-21,800 held on the late day push to 21,718.

The S&P 500 added nearly 3 points, or 0.1%, to settle at 2,428. The index tested a low of 2,417 with support at 2,425-2,415 and the 100-day moving average holding. A move below the latter could lead to a further backtest to 2,400-2,390. Lowered resistance is at 2,435-2,440 followed by 2,450 and the 50-day moving average with yesterday’s high reaching 2,430.

The Nasdaq declined 3 points, or 0.1%, to end at 6,213. Tech made a 10-point run to 6,226 on the open but easily failed resistance at 6,250-6,300. Fresh support at 6,175-6,150 and the 100-day moving average held on the drop to 6,176 shortly afterwards. A move below the latter would be a bearish development.

The Russell 2000 dipped a point, or 0.1%, to finish at 1,356. The small-caps fell to 1,351 shortly after the opening bell with support at 1,350-1,345. Lowered resistance at 1,360-1,365 held on the late day push to 1,358.

The S&P 500 Volatility Index ($VIX, 13.19, down 1.07) bubbled to a high of 14.75 at the start of trading with fresh resistance at 14.50-15 getting split. Support at 13.50-12.50 came into play on the drop to 13.07 midday. I mentioned continued closes below 13.50 would be slightly bullish and a level the bulls need to hold today.

From desk to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx).

Important Notice: I want to first thank everyone who continues to be a happy subscriber and the positive emails you have sent on our recent triple-digit winners. I do my best, each and every day, to write an informative newsletter and more importantly, teach you how I trade and see the market. Over my 10 years of running, I have made great friendships, enjoyed our conversations and I wouldn’t change a thing.

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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, $5.94, down $0.07)

TXMD December 7.50 calls (TXMD171215C00007500, $0.70, down $0.15)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -29%
Stop Target: None

Action: Upper support at $6-$5.75 failed to hold following yesterday’s low of $5.79. Lowered resistance is at $6.25-$6.50.


Intel (INTC, $34.92, down $0.09)

INTC October 37 calls (INTC171020C00037000, $0.25, down $0.08)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -54%
Stop Target: None

Action: Support is at $34.75-$34.50 with Monday’s low reaching $34.70. Resistance is at $35-$35.25.


TiVo (TIVO, $18.50, up $0.40)

TIVO October 20 calls (TIVO171020C00020000, $0.60, up $0.05)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -13%
Stop Target: None

Action: Lowered resistance at $18.50-$18.75 held on yesterday’s run to $18.60. Rising support is at $18.25-$18.