Pre-Market Update for 9/15/2017

Dow Stays Strong

8:00am (EST)

The market traded mostly lower throughout Thursday with the Dow showing continued strength after setting a fresh all-time intraday of 22,216. The fifth-straight win for the blue-chips was offset by weakness in the broader market although the damage was limited. The Utilities and Real Estate sectors showed the most strength, rising 0.8% and 0.7%, respectively. Consumer Discretionary was the laggard after pulling back 0.5%.

The Dow gained 45 points, or 0.2%, to end at 22,203. The blue-chips kissed a low of 22,135 on the open with rising support at 22,100-22,000 holding. Lower resistance at 22,200-22,400 was cleared with the fresh all-time high high reaching 22,216.

The S&P 500 declined nearly 3 points, or 0.1%, to close at 2,495. The index set a morning intraday all-time high of 2,498.43 with lower resistance at 2,500-2,525 holding for the third-straight session. Aside from that, much of the session was spent in the red with the low tapping 2,491. Support remains at 2,475-2,470.

The Nasdaq gave back 31 points, or 0.5%, to settle at 6,429. Tech traded in negative territory throughout the session with the low reaching 6,424. Rising support at 6,425-6,400 held with a move below 6,375 signaling a short-term top. Resistance is at 6,475-6,525.

The Russell 2000 slipped nearly 2 points, or 0.1%, to finish at 1,425. The small-caps tested a morning low of 1,421 with support at 1,415-1,410 holding. There is risk to 1,400-1,395 on a move below the latter. Lower resistance at 1,425-1,430 held on into the close with the intraday high reaching 1,427.

The S&P 500 Volatility Index ($VIX, 10.44, down 0.06) traded in another tight range of 10.28-11.04 with a higher high and lower low than the previous session. The close below upper support at 10.50-10 was slightly bullish. Resistance remains at 11.50-12.50.

I could have new trades this morning, depending on market action. We have five open positions with room to add up to three-five more trades if the trend remains bullish.


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, $32.19, up $0.01)

CSCO October 32 calls (CSCO171020C00032000, $0.55, flat)

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

Action: Resistance is at $32.25-$32.50 with yesterday’s high reaching $32.22. Support is at $32-$31.75.


Cypress Semiconductor (CY, $14.30, up $0.16)

CY October 14 calls (CY171020C00014000, $0.75, up $0.05)

Entry Price: $0.60 (9/1/2017)
Exit Target: $1.20
Return: 25%
Stop Target: None

Action: Thursday’s run to $14.44 nearly cleared upper resistance at $14.25-$14.50. Support is trying to move up to $14.25-$14.


TherapeuticsMD (TXMD, $6.54, up $0.01)

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: Resistance is at $6.75. Support is at $6.25.


Intel (INTC, $36.47, up $0.14)

INTC October 37 calls (INTC171020C00037000, $0.50, up $0.10)

Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: -7%
Stop Target: 10 cents (Stop Limit)

Action: Upper resistance at $36.50-$36.75 held on yesterday’s push to $36.69. Support is at $36-$35.75.


TiVo (TIVO, $18.70, up $0.10)

TIVO October 20 calls (TIVO171020C00020000, $0.45, flat)

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

Action: Shares traded up to $18.85 on Thursday. Resistance is at $18.75-$19. Support is at $18.25-$18.