MomentumOptions.com Pre-Market Update for 9/1/2017
Bulls Grab August By the Horns
The market showed continued strength while pushing early August resistance levels following today’s gains. All major sectors contributing to the rally with Health Care surging 1.7%. For the month of August, the bulls quietly overtook the bears to get the overall wins on the Dow, S&P 500, and Nasdaq. The bears grabbed victory in the small-caps with the Russell 2000 closing lower for the month.
The Dow gained 55 points, or 0.3%, to finish at 21,948. The blue-chips held positive territory throughout the session while trading up to 21,985. Upper resistance at 21,900-22,000 was challenged with a close above the latter a bullish development. Support remains at 21,800-21,750.
The S&P 500 advanced 14 points, or 0.6%, to close at 2,471. The index opened higher at 2,462 while reaching an intraday peak of 2,475. Fresh resistance at 2,470-2,475 was tested with further hurdles at 2,480-2,485. Support has moved up to 2,460-2,455.
The Nasdaq surged 60 points, or 1%, to end at 6,428. Tech made a steady push to 6,435 ahead of the closing bell to clear upper resistance at 6,400-6,425. Fresh hurdles are at 6,450-6,475 with the all-time high at 6,460. Rising support is at 6,400-6,375.
The Russell 2000 rallied roughly 14 points, or 1%, to settle at 1,405. The small-caps opened a point higher at 1,392 while making a midday push to 1,406 while settling just below the 50-day moving average. Fresh resistance is at 1,415-1,420 on a move above 1,410. Rising support is at 1,385-1,380.
The S&P 500 Volatility Index ($VIX, 10.59, down 0.63) traded in negative territory throughout the session with the low reaching 10.34. Lower support at 11-10.50 held with a close below the latter ahead of the 3-day weekend a slightly bullish signal. Lowered resistance is at 11.50-12.50.
From desk to press, futures look like this: Dow (+27); S&P 500 (+1); Nasdaq 100 (+8).
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.
Materials Select Sector Spider (XLB, $55.07, up $0.42)
XLB October 56 calls (XLB171020C00056000, $0.50, up $0.12)
Entry Price: $0.45 (8/31/2017)
Exit Target: $0.90
Stop Target: None
Action: Yesterday’s run to $55.19 cleared lower resistance at $55-$55.25. Continued closes above the latter would be a bullish development. The 52-week high is at $55.92 that was reached in late July. Rising support is at $54.25-$54.
Amicus Therapeutics (FOLD, $13.94, down $0.15)
FOLD October 15 calls (FOLD171020C00015000, $1.50, down $0.10)
Entry Price: $1.05 (8/25/2017)
Exit Target: $2.10
Stop Target: $1.25 (Stop Limit)
Action: Support is at $13.50-$13.25. Resistance is at $14.25-$14.50.
TherapeuticsMD (TXMD, $5.97, down $0.06)
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 $5.75. Resistance is at $6.25.
Intel (INTC, $35.07, up $0.18)
INTC October 37 calls (INTC171020C00037000, $0.15, flat)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Stop Target: 10 cents (Stop Limit)
Action: Fresh resistance at $35.25-$35.50 with yesterday’s high reaching $35.18. Support is at $34.50-$34.25.
TiVo (TIVO, $18.30, up $0.15)
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 $18.50-$18.75. Support is at $18.25-$18.