MomentumOptions.com Pre-Market Update for 8/29/2017
Small-Caps Show Strength
The market traded in a tight range to finish slightly higher following concerns about what impact Hurricane Harvey may have on the U.S. economy. The small-caps showed the most strength with the blue-chips ending slightly lower. Oil prices were lower by over 2% while gasoline prices gained roughly 3% as many of the nation’s refiners were shut down due to the hurricane.
The Dow slipped 5 points, or 0.02%, to end at 21,808. The blue-chips traded up to 21,861 shortly after the open with lower resistance at 21,900-22,000 easily holding. Support at 21,800-21,750 held on the fall to 21,767 afterwards.
The S&P 500 gained a point, or 0.1%, to settle at 2,444. The index failed lower resistance at 2,455-2,460 on the open following a run to 2,449. Upper support at 2,340-2,335 was breached but held with yesterday’s low reaching 2,439.
The Nasdaq added 17 points, or 0.1%, to finish at 6,283. Tech made a push to 6,292 an hour into trading with lower resistance at 6,300-6,350 holding for the fifth-straight session. Support remains at 6,250-6,200.
The Russell 2000 rallied nearly 5 points, or 0.4%, to close at 1,382. The small-caps dipped nearly a half-point during the morning action to 1,377 with rising support at 1,365-1,360 holding. Resistance at 1,380-1,385 was split into the closing bell with a close above the latter being a slightly bullish sign.
The S&P 500 Volatility Index ($VIX, 11.34, up 0.04) made a morning low of 11.23 with support at 11-10.50 holding. Resistance at 12.50-13.50 held on the intraday pop to 12.11.
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.
Amicus Therapeutics (FOLD, $13.49, up $0.39)
FOLD October 15 calls (FOLD171020C00015000, $1.25, up $0.20)
Entry Price: $1.05 (8/25/2017)
Exit Target: $2.10
Stop Target: None
Action: Shares tested a high of $13.66 to get fresh resistance at $13.75-$14 in play. Rising support is at $13.25-$13.
TherapeuticsMD (TXMD, $6.09, up $0.16)
TXMD December 7.50 calls (TXMD171215C00007500, $0.65, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Resistance is at $6-$6.25 with Monday’s high tapping $6.17. Support is at $6-$5.75.
Intel (INTC, $34.65, down $0.02)
INTC October 37 calls (INTC171020C00037000, $0.14, down $0.02)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Stop Target: 10 cents (Stop Limit)
Action: Yesterday’s low reached $34.59. Support is at $34.50-$34.25. Resistance is at $34.75-$35.
TiVo (TIVO, $18.00, up $0.05)
TIVO October 20 calls (TIVO171020C00020000, $0.35, flat)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Resistance is at $18.25. Support is at $17.75.