Pre-Market Update for 9/14/2017

Bulls Tap All-Time Closing Highs

8:00am (EST)

The market began Wednesday’s session in a holding pattern with trading ranges extremely narrow. A late day push into positive territory was enough for record closing highs on the Dow, S&P 500 and the Nasdaq. The Russell 2000 remains just under 2% before it sets another all-time high. Energy led the sectors in the green while Utilities were the weakest link.

The Dow advanced 39 points, or 0.2%, to finish at 22,158. The blue-chips were slightly weak during the first half of action after trading down to 22,095. Support at 21,800-21,750 easily held before a late day push into the closing high. Resistance at 22,200-22,400 held with the all-time high just 21 points away.

The S&P 500 climbed 2 points, or 0.1%, to close at 2,498. The index slipped to 2,492 midday but support at 2,475-2,470 was never threatened. The close at the session high fell shy of lower resistance at 2,500-2,525.

The Nasdaq popped a 6-pack, or 0.1%, to end at 6,460. Tech was weak throughout the session with the low checking-in at 6,433. Support at 6,400-6,375 held. The burst into positive territory ahead of the close just missed clearing the all-time intraday high by a half-point. Short-term resistance is at 6,475-6,525 also holding.

The Russell 2000 added 3 points, or 0.2%, to settle at 1,426. The small-caps fell 2 points to 1,421 on the open with rising support at 1,415-1,410. Backup help is at 1,400-1,395. The close above lower resistance at 1,425-1,430 was a continued bullish signals with a close above the latter getting 1,435-1,440 in play.

The S&P 500 Volatility Index ($VIX, 10.50, down 0.08) traded in a tight range of 10.33-10.86 while closing on upper support at 10.50-10. Resistance remains at 11.50-12.50.

From desk to press, futures look like this: Dow (-11); S&P 500 (-2); Nasdaq 100 (-5).


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.


Cisco Systems (CSCO, $32.16, down $0.25)

CSCO October 32 calls (CSCO171020C00032000, $0.55, down $0.20)

Entry Price: $0.50 (9/13/2017)
Exit Target: $1.00
Return: 10%
Stop Target: None

Action: Support is at $32-$31.75 with yesterday’s low reaching $31.96. Resistance is at $32.25-$32.50. A close above the latter would represent a double-top breakout and be a bullish signal. There was heavy buying in these call options into the closing bell with volume topping 1,300. At the time of the Trade Alert yesterday, volume was below 500 contracts.


Cypress Semiconductor (CY, $14.14, down $0.02)

CY October 14 calls (CY171020C00014000, $0.70, flat)

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

Action: Wednesday’s low tapped $13.85. Support is at $14-$13.75. Resistance is at $14.25-$14.50.


TherapeuticsMD (TXMD, $6.53, up $0.11)

TXMD December 7.50 calls (TXMD171215C00007500, $0.80, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -18%
Stop Target: None

Action: Shares cleared lowered resistance at $6.50-$6.75 on yesterday’s run to $6.67. Support is at $6.25.


Intel (INTC, $36.33, up $0.24)

INTC October 37 calls (INTC171020C00037000, $0.40, up $0.05)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -24%
Stop Target: 10 cents (Stop Limit)

Action: Lower resistance at $36.25-$36.50 was cleared with Wednesday’s high reaching $36.40. Rising support is at $36-$35.75.


TiVo (TIVO, $18.62, up $0.17)

TIVO October 20 calls (TIVO171020C00020000, $0.45, up $0.05)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -37%
Stop Target: None

Action: Resistance is at $18.75-$19 with yesterday’s close above the 200-day moving average a bullish development. Support is at $18.25-$18.