Mid-Market Update for 9/1/2017

First Day of September Typically Bullish

3:00pm (EST)

The first trading day of September has been bullish in recent years but throwing in a three-day holiday weekend on light volume would normally spook investors. With money still flowing into the market heading into the second half of action, perhaps the smart money has been working all week.

It’s been a wild week of action that witnessed the bulls storming back to take August. The major indexes are once again near all-time record highs and a continued rally could last into mid-September on strong momentum. Any pullback could be buying opportunities as fund managers start to put money back to work mid-month. However, rising support levels will need to be watched carefully.

The suit-and-ties will be forced to show their clients returns after barking all summer a massive pullback was coming. Perhaps a selloff is in the cards this month, October, or in November/ December. Maybe one isn’t coming, at all this year.

Heading into the Dow is up 68 points to 22,016 while the S&P 500 is gaining 7 points to 2,478. The Nasdaq is higher by 7 points to 6,435 and the Russell 2000 is advancing 5 points to 1,410.

I have a New Trade so let’s get on it. I will be back Tuesday with my next update. Until then, have a great and safe 3-day weekend.


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.


New Trade

Cypress Semiconductor (CY, $13.88, up $0.20)

Buy to Open CY October 14 calls (CY171020C00014000, $0.60, up $0.10)

Action: I like these call options at current levels and you can use a Limit Order up to 70 cents to get the best fills. These are the regular CY October 14 calls that expire on October 20th, 2017. I will provide the parameters of the trade in Tuesday’s Pre-Market update.


Current Trades

Materials Select Sector Spider (XLB, $55.45, up $0.38)

XLB October 56 calls (XLB171020C00056000, $0.60, up $0.10)

Entry Price: $0.45 (8/31/2017)
Exit Target: $0.90
Return: 33%
Stop Target: None

Action: Fresh resistance is at $55.50-$55.75. Rising support is at $55.25-$55.


Amicus Therapeutics (FOLD, $14.22, up $0.29)

FOLD October 15 calls (FOLD171020C00015000, $1.50, flat)

Entry Price: $1.05 (8/25/2017)
Exit Target: $2.10
Return: 47%
Stop Target: $1.25 (Stop Limit)

Action: Resistance is at $14.25-$14.50. Support is at $13.50-$13.25.


TherapeuticsMD (TXMD, $6.00, up $0.01)

TXMD December 7.50 calls (TXMD171215C00007500, $0.65, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -32%
Stop Target: None

Action: Support is at $5.75. Resistance is at $6.25.


Intel (INTC, $35.11, up $0.04)

INTC October 37 calls (INTC171020C00037000, $0.15, flat)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -72%
Stop Target: 10 cents (Stop Limit)

Action: Resistance is at $35.25-$35.50. Support is at $34.50-$34.25.


TiVo (TIVO, $18.45, up $0.15)

TIVO October 20 calls (TIVO171020C00020000, $0.35, flat)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -50%
Stop Target: None

Action: Resistance is at $18.50-$18.75. Support is at $18.25-$18.