Pre-Market Update for 8/24/2017

Small-Caps Show Some Strength

8:00am (EST)

The market traded lower on Wednesday following their best daily performance since April on Tuesday. Much of the session was spent underwater although the small-caps showed midday strength after briefly trading in positive territory. Reaction to President Trump’s speech last night regarding the funding for the Mexican border wall caused some nervousness along with Friday’s upcoming Fed speak. The Energy, Real Estate, and Utilities sectors showed strength.

The Dow dropped 87 points, or 0.4%, to end at 21,812. The blue-chips traded in the red throughout the session while reaching an intraday low of 21,808. Upper support at 21,800-21,750 held with risk to 21,600-21,550 on a move below the latter. Resistance is at 22,000-22,100.

The S&P 500 fell 8 points, or 0.4%, to finish at 2,444. The index kissed a low of 2,441 with slightly rising support at 2,340-2,335 holding. Backup help is at 2,425-2,415 with a move below the latter a bearish signal. Resistance remains at 2,465-2,470.

The Nasdaq gave back 19 points, or 0.3%, to close at 6,278. Tech tripped 6,263 on the open and the session low. Support at 6,250-6,200 held with a move under 6,175 being a signal to go short. Lowered resistance is at 6,325-6,350.

The Russell 2000 slipped nearly 2 points, or 0.1%, to settle at 1,369. The small-caps tested a low of 1,363 shortly after the opening bell with upper support at 1,360-1,355 holding. Resistance is at 1,380-1,385.

The S&P 500 Volatility Index ($VIX, 12.25, up 0.90) gained 8% after trading to a high of 12.59. Lower resistance at 12.50-13.50 was slightly stretched but held into the close. Support is at 11-10.50.

From desk to press, futures look like this: Dow (-8); S&P 500 (-2); Nasdaq 100 (-5).


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 $0.11)

TXMD December 7.50 calls (TXMD171215C00007500, $0.70, flat)

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

Action: Support is at $6-$5.75 with Wednesday’s low tapping $5.83. Resistance is at $6-$6.25.


Intel (INTC, $34.66, up $0.01)

INTC October 37 calls (INTC171020C00037000, $0.18, flat)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -69%
Stop Target: None

Action: Support is at $34.50-$34.25. Resistance is at $34.75-$35.


TiVo (TIVO, $18.45, down $0.15)

TIVO October 20 calls (TIVO171020C00020000, $0.50, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -29%
Stop Target: None

Action: Upper support at $18.25-$18 held on yesterday’s fade to $18.27. Resistance is at $18.75-$19.