Pre-Market Update for 10/4/2017

Small-Caps Up 8-Straight

8:00am (EST)

The market traded higher across the board for the fifth-straight session and continued all-time highs following Tuesday’s gains. The Russell 2000 closed in positive territory for the eighth-straight session with the Dow tapping its 44th record high for the year. The S&P has done so 41 times. Materials and Industrials were the strongest sectors, rising 0.4%. Utilities were the sector laggard after falling 0.3%.

The Dow rallied 84 points, or 0.4%, to close at 22,641. The blue-chips opened in positive territory while making a run towards 22,646 with fresh resistance at 22,750-22,800 holding. Rising support is now at 22,400-22,350.

The S&P 500 climbed 5 points, or 0.2%, to settle at 2,534. The index slipped a half-point to 2,528 shortly after the open with rising support at 2,510-2,500 easily holding. Fresh resistance 2,550-2,560 remains in play on continued closes above 2,540.

The Nasdaq advanced 15 points, or 0.2%, to finish at 6,531. Tech fell 7 points to 6,509 during the first half of trading with rising support at 6,475-6,450 holding. Upper resistance at 6,550-6,575 remains in play following the run to a record high of 6,532.

The Russell 2000 added 2 points, or 0.2%, to end just under 1,512. The small-caps dipped down to 1,503 a couple of hours into trading with rising support at 1,500-1,490 holding. Lower resistance at 1,515-1,525 held on the record high into the closing bell.

The S&P 500 Volatility Index ($VIX, 9.51, up 0.06) kissed a low of 9.30 on the open with lower support at 9.50-9.25 holding. The session high afterwards tapped 9.75 to hold lower resistance at 10-10.50.

I have updated our current trades so let’s go check the tape.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 49-19 (72%). 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, $15.42, up $0.11)

CY November 16 calls (CY171117C00016000, $0.55, up $0.05)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 22%
Stop Target: None

Action: Resistance is at $15.50-$15.75 with yesterday’s 52-week high reaching $15.47. Rising support is at $15.25-$15.


Limelight Networks (LLNW, $4.19, up $0.10)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.45, up $0.05)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 18%
Stop Target: None

Action: Resistance is at $4.20-$4.25 with Tuesday’s peak reaching $4.22. Support is at $3.90-$3.75.


TherapeuticsMD (TXMD, $5.01, down $0.15)

TXMD December 7.50 calls (TXMD171215C00007500, $0.25, down $0.05)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -73%
Stop Target: None

Action: Support is at $5-$4.75 following the backtest to $4.92. Lowered resistance is at $5.25.


TiVo (TIVO, $19.75, down $0.10)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.60, down $0.15)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -14%
Stop Target: None

Action: Upper support at $19.50-$19.25 held on the backtest to $19.40. Resistance remains at $20-$20.25.