MomentumOptions.com Pre-Market Update for 8/31/2017
Small-Caps Clear 200-Day Moving Average
The market continued its rebound off Tuesday morning’s opening lows to push fresh resistance into Wednesday’s close. Some of the enthusiasm can be attributed to President Trump’s plans on tax reform as the Financial sector showed strong gains. Technology, Materials, and Consumer Discretionary performed just as well. Consumer Staples and Energy were the only sectors in the red.
The Dow added 27 points, or 0.1%, to settle at 21,892. The blue-chips tested a low of 21,839 shortly after the open with shaky support at 21,800-21,750 holding. Backup help is at 21,600-21,550 and the 50-day moving average. The run to 21,914 afterwards cleared lower resistance at 21,900-22,000.
The S&P 500 jumped 11 points, or 0.5%, to finish at 2,457. The index traded down to 2,443 on the open with support at 2,440-2,435 holding. There is risk to 2,425-2,420 and the 100-day moving average on a move below the latter. Upper resistance at 2,455-2,460 was tested on the intraday high.
The Nasdaq soared 66 points, or 1.1%, to close at 6,368. Tech held positive territory throughout the session while trading up to 6,374. The close above upper resistance at 6,300-6,350 was a bullish signal with fresh hurdles at 6,400-6,425. Support has moved up to 6,325-6,300.
The Russell 2000 advanced 7 points, or 0.5%, to end at 1,391. The small-caps dipped to 1,381 on the open with rising support at 1,375-1,370 holding. Upper resistance at 1,380-1,385 was cleared on the push to 1,392 with the close above the 200-day moving average getting 1,400-1,405 in play.
The S&P 500 Volatility Index ($VIX, 11.22, down 0.48) kissed 11.98 at the start of trading with resistance at 12.50-13.50 easily holding. Support at 11-10.50 held on the intraday low of 10.96.
From desk to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx).
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, $14.09, up $0.23)
FOLD October 15 calls (FOLD171020C00015000, $1.60, up $0.25)
Entry Price: $1.05 (8/25/2017)
Exit Target: $2.10
Stop Target: None
Action: Resistance is at $14.25-$14.50 with yesterday’s 52-week high reaching $14.24. Support is at $13.50-$13.25.
TherapeuticsMD (TXMD, $6.03, up $0.03)
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 $6.25. Support is at $6-$5.75.
Intel (INTC, $34.89, up $0.16)
INTC October 37 calls (INTC171020C00037000, $0.15, up $0.03)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Stop Target: 10 cents (Stop Limit)
Action: Resistance at $34.75-$35 was split following yesterday’s push to x. Support is at $34.50-$34.25.
TiVo (TIVO, $18.15, down $0.35)
TIVO October 20 calls (TIVO171020C00020000, $0.35, flat)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Support is at $18.25-$18. Resistance is at $18.75-$19.