MomentumOptions.com Pre-Market Update for 10/11/2017
Bulls Continue Blue-Sky Run
The market continued to trade in a tight range and ahead of the financial companies reporting later in the week. Today’s action was mostly bullish as the Dow, S&P 500 and the Nasdaq reached fresh intraday record highs while closing in positive territory. The Russell 2000 also finished higher but failed its lifetime high by 3 points.
The Dow gained 69 points, or 0.3%, to settle at 22,830. The blue-chips held positive territory throughout the session reaching a record high of 22,850. The close above lower resistance at 22,800-23,000 continues to be a bullish sign. Support remains at 22,600.
The S&P 500 added 6 points, or 0.3%, to finish at 2,550. The index peaked at 2,555 to split and close on lower resistance at 2,550-2,560. Support is trying to move up to 2,540 followed by 2,525-2,520.
The Nasdaq advanced 7 points, or 0.1%, to end at 6,587. Tech cleared the 6,660 level to reach 6,608 at the start of trading to keep all-time highs and resistance at 6,650-6,700 in play. Support at 6,525-6,500 held on the midday backtest to 6,561.
The Russell 2000 climbed 4 points, or 0.3%, to close at 1,508. The small-caps made a run to 1,511 on the open with lower resistance at 1,515-1,525 holding. Support remains at 1,500-1,490.
The S&P 500 Volatility Index ($VIX, 10.08, down 0.25) traded to a low of 9.94 with upper support at 9.75-9.50 holding. Lower resistance at 10.50-11.50 was breached for the second-straight session but held into the closing bell.
I could have updated the current CY trade with an initial Stop Limit so adjust your trading accounts accordingly.
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, $15.94, up $0.41)
CY November 16 calls (CY171117C00016000, $0.75, up $0.20)
Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Stop Target: 50 cents (Stop Limit)
Action: Set a Stop Limit at 50 cents to start protecting initial profits.
Fresh resistance is at $16-$16.25 following yesterday’s run to $16 and a fresh 52-week high. Rising support is at $15.50-$15.25.
Limelight Networks (LLNW, $4.23, up $0.13)
LLNW December 4 calls (LLNW171215C00004000, $0.55, flat)
Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Stop Target: None
Action: Resistance is at $4.25 with Tuesday’s high reaching $4.24. Support is at $4-$3.90.
TherapeuticsMD (TXMD, $4.88, down $0.15)
TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Stop Target: None
Action: Support is at $4.75. Resistance is at $5-$5.25.
TiVo (TIVO, $19.60, up $0.15)
TIVO October 20 calls (TIVO171020C00020000, $0.50, down $0.10)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Stop Target: None
Action: Resistance is at $19.75-$20. Support is at $19.25.