MomentumOptions.com Pre-Market Update for 8/30/2017
Bulls Hold Backup Support
The market traded to its lows shortly after the opening action but worked its way back to even midday. The rest of the session was spent in a tight range before higher closes across the board. Industrials, Technology and Consumer Staples showed strength while Materials and the Financials were the weakest sectors.
The Dow advanced 57 points, or 0.3%, to settle at 21,865. The blue-chips traded to a low reaching 21,683 with backup support at 21,600-21,550 and the 50-day moving average holding. A move below the latter would be a bearish development. The rebound to 21,879 afterwards failed lower resistance at 21,900-22,000.
The S&P 500 climbed 2 points, or 0.1%, to finish at 2,446. The index opened at 2,431 and tested a low of 2,428 intraday. Support at 2,425-2,420 and the 100-day moving average held. The turnaround to 2,449 failed resistance at 2,455-2,460 into the closing bell.
The Nasdaq added 18 points, or 0.3%, to close at 6,301. Tech tumbled to a low of 6,228 to split support at 6,250-6,200. The high of 6,311 afterwards and close above lower resistance at 6,300-6,350 was a slightly bullish signal.
The Russell 2000 gained a point, or 0.1%, to end at 1,383. The small-caps made a morning backtest to 1,371 with support at 1,365-1,360 holding. Upper resistance at 1,380-1,385 held on the session high with the close above the 200-day moving average a slightly bullish sign.
The S&P 500 Volatility Index ($VIX, 11.70, up 0.38) spiked to a high of 14.34 with backup resistance at 14.50-15 holding. Support remains at 11-10.50.
From desk to press, futures look like this: Dow (+24); S&P 500 (+1); Nasdaq 100 (+6).
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, $13.86, up $0.37)
FOLD October 15 calls (FOLD171020C00015000, $1.35, up $0.10)
Entry Price: $1.05 (8/25/2017)
Exit Target: $2.10
Stop Target: None
Action: Upper resistance at $13.75-$14 was cleared on the 52-week high of $14.05 yesterday. Rising support is at $13.50-$13.25.
TherapeuticsMD (TXMD, $5.97, down $0.10)
TXMD December 7.50 calls (TXMD171215C00007500, $0.65, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Support is at $6-$5.75. Resistance is at $6-$6.25.
Intel (INTC, $34.73, up $0.08)
INTC October 37 calls (INTC171020C00037000, $0.14, flat)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Stop Target: 10 cents (Stop Limit)
Action: Resistance is at $34.75-$35. Support is at $34.50-$34.25.
TiVo (TIVO, $18.50, up $0.50)
TIVO October 20 calls (TIVO171020C00020000, $0.35, flat)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Lower resistance at $18.50-$18.75held on the run to $18.58 on Monday. Support is at $18-$17.75.