Pre-Market Update for 10/6/2017

Bulls Keep Pushing Blue-Sky Territory

8:00am (EST)

The market stayed strong with the S&P 500 and Nasdaq trading higher for the 8th-straight session, their best streaks since May, while pushing fresh all-time highs into the close. The Dow is on a 7-session roll while the Russell 2000 returned to its winning ways after having its 8-session winning streak snapped on Wednesday. Both indexes also set fresh lifetime intraday highs. The Financial and Tech sectors led the way higher following 1% gains.

The Dow jumped 113 points, or 0.5%, to finish at 22,775. The blue-chips slipped 6 points to 22,655 shortly after the open with support at 22,600 holding. There is risk to 22,400-22,350 on a move below this level. Lower resistance at 22,750-22,800 held on the peak of 22,777 into the close.

The S&P 500 soared 14 points, or 0.5%, to end at 2,552. The index held positive territory throughout the session while closing a half-point off its high ahead of the bell. The close below lower resistance at 2,550-2,560 was a continued bullish signal. Rising support is at 2,525-5,520 followed by 2,510-2,500.

The Nasdaq surged 50 points, or 0.8%, to close at 6,585. Tech also held green throughout Thursday while trading to a peak of 6,587. Upper resistance at 6,550-6,575 was cleared to open up fresh fluff to 6,650-6,700 on continued strength.
Support has moved up to 6,525-6,500 with a drop below 6,450 signaling a short-term top.

The Russell 2000 added 4 points, or 0.3%, to settle at 1,512. The small-caps opened higher at 1,508 while making an intraday run to 1,514. Lower resistance at 1,515-1,525 held by a point. Support remains at 1,500-1,490 followed by 1,475-1,470.

The S&P 500 Volatility Index ($VIX, 9.19, down 0.44) was weak throughout the day after trading down to 9.13. Lower support at 9.50-9.25 was cleared and gets the 52-week low at 8.84 back in the mix. Resistance remains at 10-10.50.

From desk to press, futures look like this: Dow (-10); S&P 500 (-5); Nasdaq 100 (-1).


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, $15.48, up $0.07)

CY November 16 calls (CY171117C00016000, $0.50, flat)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 11%
Stop Target: None

Action: Lower resistance at $15.50-$15.75 held on Thursday’s high. Support is at $15.25-$15.


Limelight Networks (LLNW, $4.28, down $0.08)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.60, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 57%
Stop Target: None

Action: Support is at $4.25-$4.20. Resistance is at $4.50.


TherapeuticsMD (TXMD, $5.08, down $0.05)

TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)

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

Action: Support is at $5-$4.75 with yesterday’s low reaching $5.03. Resistance remains at $5.25.

TiVo (TIVO, $19.65, up $0.05)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.60, flat)

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

Action: Thursday’s peak reached $19.95. Resistance is at $20-$20.25. Support is at $19.50-$19.25.