Pre-Market Update for 8/25/2017

Tight Action Ahead of Fed Speak

8:00am (EST)

The market traded in a relatively tight range while finishing mixed ahead the start of the annual Jackson Hole, Wyoming conference beginning today. A littany of Fedspeak emerged throughout the session from Jackson Hole, with much of the rhetoric focused on keeping quantitative tightening on schedule while pausing on interest rates.

The Dow dipped 28 points, or 0.1%, to finish at 21,783. The blue-chips traded up to 21,870 on the open with resistance at 21,900-22,000 holding. Lower support at 21,800-21,750 held on the backtest to 21,765. A close below the latter ahead of the weekend would be a bearish development.

The S&P 500 slipped 5 points, or 0.2%, to close at 2,439. The index kissed 2,450 shortly after the open lowered resistance at 2,455-2,460. Lower support at 2,340-2,335 held on the fade to 2,436 shortly afterwards.

The Nasdaq fell 7 points, or 0.1%, to settle at 6,271. Tech tested a high of 6,302 on the morning strength clear lower resistance at 6,300-6,350. Upper support at 6,250-6,200 held on the backtest to 6,244.

The Russell 2000 gained 4 points, or 0.3%, to end at 1,373. The small-caps held positive territory throughout the session while reaching a peak of 1,377. Lower resistance at 1,380-1,385 held with a move above the later being a bullish development. Support remains at 1,360-1,355.

The S&P 500 Volatility Index ($VIX, 12.23, down 0.02) traded to a morning high of 12.83 with resistance at 12.50-13.50 holding. The low reached 11.55 with support at 11-10.50 standing strong.

Today’s action could be pivotable for a possible near-term trend emerging but I wouldn’t be surprised to see the choppy action continue into next week. The best clues from today’s action will likely come from the small-caps and the VIX.


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, $6.13, up $0.20)

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: Resistance at $6-$6.25 was split on the run to $6.19. Support is at $6-$5.75.


Intel (INTC, $34.71, up $0.05)

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

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -68%
Stop Target: None

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


TiVo (TIVO, $18.05, down $0.40)

TIVO October 20 calls (TIVO171020C00020000, $0.40, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -42%
Stop Target: None

Action: Support is at $18-$17.75 with yesterday’s low tapping $17.92. Resistance is at $18.50.