Pre-Market Update for 9/7/2017

Russell 2000 Recovers 1,400 Level

8:00am (EST)

The market rebounded on Wednesday with the Dow and S&P holding their 50-day moving averages following Tuesday’s dip below these levels. The Nasdaq had an inside day after failing lowered resistance and the Russell 2000 recovered the 1,400 level while holding its 100-day moving average. Most sectors showed strength while finishing in the green with Energy leading the way higher. Utilities lagged and was the only sector that closed lower.

The Dow gained 54 points, or 0.3%, to settle at 21,807. The blue-chips held positive territory throughout the session while trading to a high of 21,849. Lower resistance at 21,900-22,000 held with a move above the latter being a bullish development. Support remains at 21,800-21,750 held with backup help at 21,600-21,550.

The S&P 500 added 7 points, or 0.3%, to finish at 2,465. The index made a late day run to 2,469 but fell shy of resistance at 2,475-2,480. Support at 2,450-2,440 with risk to 2,425-2,420 on a move below the latter.

The Nasdaq advanced 17 points, or 0.3%, to close at 6,393. Tech opened higher at 6,394 before fading into negative territory to a low 6,356. Support at 6,325-6,300 held before a late day push to 6,407. Resistance remains at 6,425-6,450 on continued closes above 6,400.

The Russell 2000 climbed 2 points, or 0.2%, to end at 1,402. The small-caps traded in a tight 7-point range with the intraday peak reaching 1,406. Resistance at 1,410-1,415 held. Support remains at 1,395-1,390 with a close below the latter being a bearish development.

The S&P 500 Volatility Index ($VIX, 11.63, down 0.60) traded to a high of 12.59 during the first half of action with lower resistance at 12.50-13.50 holding. The low of 11.35 cleared upper support at 11.50-10.50 but a level that held into the close along with the 200-day moving average.

From desk to press, futures look like this: Dow (-40); S&P 500 (-4); Nasdaq 100 (-8).


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, $13.71, down $0.02)

CY October 14 calls (CY171020C00014000, $0.50, down $0.10)

Entry Price: $0.60 (9/1/2017)
Exit Target: $1.20
Return: -17%
Stop Target: None

Action: Lower support at $13.60-13.50 held on yesterday’s backtest to $13.62. Resistance is at $14.


TherapeuticsMD (TXMD, $6.45, up $0.09)

TXMD December 7.50 calls (TXMD171215C00007500, $0.75, up $0.05)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -21%
Stop Target: None

Action: Yesterday’s high reached $6.55. Resistance is at $6.50-$6.75. Support is at $6.25-$6.


Intel (INTC, $35.76, up $0.74)

INTC October 37 calls (INTC171020C00037000, $0.30, up $0.15)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -43%
Stop Target: 10 cents (Stop Limit)

Action: Fresh resistance is at $36 with Wednesday’s high reaching $35.94. Support is at $35.50-$35.25.


TiVo (TIVO, $18.10, up $0.28)

TIVO October 20 calls (TIVO171020C00020000, $0.30, up $0.05)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -57%
Stop Target: None

Action: Resistance is at $18.25-$18.50. Support is at $18-$17.75.