Pre-Market Update for 10/10/2017

Holding Pattern Continues

8:00am (EST)

The bulls showed strength on Monday’s open with the Dow and Nasdaq trading to fresh all-time intraday highs. The S&P 500 and Russell 2000 failed their lifetime peaks by a point or so before a holding pattern developed quickly afterwards. The action stayed in a tight range into the final hour of trading before the indexes eventually rolled over to close slightly lower.

The Dow declined 12 points, or 0.1%, to close at 22,761. The blue-chips kissed an all-time high of 22,803 to clear lower resistance at 22,800-23,000. The fade to 22,739 held support at 22,600 for the fourth-straight session.

The S&P 500 slipped 4 points, or 0.2%, to settle at 2,544. The index reached 2,551 on the open with resistance at 2,550-2,560 and the record high of 2,552 holding. Support at 2,525-5,520 held on the backtest to 2,541.

The Nasdaq dropped 10 points, or 0.2%, to finish at 6,579. Tech tapped a lifetime peak of 6,599 at the start of trading with fresh resistance at 6,650-6,700 holding. Support remains at 6,525-6,500 and easily held on the intraday low of 6,572.

The Russell 2000 fell 6 points, or 0.4%, to end at 1,503. The small-caps topped out at 1,513 with resistance at 1,515-1,525 and the recent all-time just south of the former holding. Upper support at 1,500-1,490 held late in the session low of 1,501.

The S&P 500 Volatility Index ($VIX, 10.33, up 0.68) stayed slightly elevated while reaching a peak of 10.53. Upper resistance at 10-10.50 was breached but held with a move above 11.50 being a slight warning sign for continued market weakness. Rising support is at 9.75-9.50.

From desk to press, futures look like this: Dow (+20); S&P 500 (+1); Nasdaq 100 (+3).


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, $15.53, up $0.02)

CY November 16 calls (CY171117C00016000, $0.55, flat)

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

Action: Resistance is at $15.75-$16 with Monday’s 52-week high reaching $15.72. Support is at $15.25-$15.


Limelight Networks (LLNW, $4.10, down $0.14)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.55, down $0.05)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 51%
Stop Target: None

Action: Support is at $4-$3.90 following yesterday’s backtest to $4.07. Lowered resistance is at $4.25.


TherapeuticsMD (TXMD, $5.03, up $0.03)

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: Resistance is at $5.25. Support is at $5-$4.75.

TiVo (TIVO, $19.45, down $0.25)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.50, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -28%
Stop Target: None

Action: Support is at $19.25 with Monday’s low tapping $19.35. Resistance is at $19.75-$20.