MomentumOptions.com Pre-Market Update for 9/6/2017
Bears Push Near-Term Support
The bears started the week by pushing near-term support with geopolitical rhetoric heating up and multiple deadlines ahead for Congress. The tumble in the Dow and S&P 500 held the 50-day moving averages as investors fled into Gold which hit its highest level of the year. The small-caps weren’t as lucky as the Russell failed its 50-day moving average along with the 100-day moving average by a half-point.
The Dow dropped 234 points, or 1.1%, to end at 21,753. The blue-chips traded in negative territory throughout the session with the low reaching 21,709. Lower support at 21,800-21,750 held with backup help at 21,600-21,550. Resistance is at 21,900-22,000.
The S&P 500 sank 18 points, or 0.8%, to settle at 2,454. The index opened 6 points lower at 2,470 while kissing an intraday low of 2,446. Lower support at 2,460-2,455 failed to hold by a point to open up further risk to 2,425-2,420. Lowered resistance is at 2,475-2,480.
The Nasdaq tanked 59 points, or 0.9%, to finish at 6,375. Tech tumbled to a low of 6,334 with backup and upper support at 6,325-6,300 holding. A move below the latter would be a bearish development. Resistance is at 6,425-6,450 on a move above 6,400.
The Russell 2000 stumbled nearly 14 points, or 1%, to close at 1,399. The small-caps came within a point of trading in positive territory but faded to a low of 1,394 intraday. Upper support at 1,395-1,390 was breached but held with a close below the latter being a bearish development. Resistance is at 1,410-1,415.
The S&P 500 Volatility Index ($VIX, 12.23, up 2.10) surged to a high of 14.06 to clear backup resistance at 12.50-13.50. The close below the former was slightly bullish but with rising support now at 11.50-10.50.
From desk to press, futures look like this: Dow (-19); S&P 500 (-1); Nasdaq 100 (-1).
Momentum Options Play List
Closed Momentum Options Trades for 2017: 46-19 (71%). 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.
Cypress Semiconductor (CY, $13.73, down $0.20)
CY October 14 calls (CY171020C00014000, $0.50, down $0.10)
Entry Price: $0.60 (9/1/2017)
Exit Target: $1.20
Stop Target: None
Action: Lower support at $13.60-13.50 held on yesterday’s backtest to $13.57. Resistance is at $14.
TherapeuticsMD (TXMD, $6.36, up $0.41)
TXMD December 7.50 calls (TXMD171215C00007500, $0.70, up $0.05)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Fresh resistance is at $6.50-$6.75 with Tuesday’s high reaching $6.48. Support is at $6.25-$6.
Intel (INTC, $35.02, down $0.07)
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: Support is at $34.75-$34.50. Resistance is at $35.25-$35.50.
TiVo (TIVO, $18.00, down $0.50)
TIVO October 20 calls (TIVO171020C00020000, $0.35, down $0.05)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Upper support at $18-$17.75 held on yesterday’s backtest to $17.80. Resistance is at $18.25.