Pre-Market Update for 10/12/2017

Market Stays Rangebound

8:00am (EST)

The market remained rangebound but showed continued strength into Wednesday’s close with the Dow and S&P 500 setting fresh all-time highs. It was the 4th-straight session in which the blue-chips have traded within a 100-point range. The Nasdaq also finished in the green and within striking distance of its recent lifetime high. Meanwhile, the small-caps closed slightly lower but have held the 1,500 level for 8-straight sessions.

The Dow added 42 points, or 0.2%, to finish at 22,872. The blue-chips fell 9 points to 22,821 on the open with support at 22,600 holding. The rebound to the lifetime session high into the close held lower resistance at 22,800-23,000.

The S&P 500 gained 4 points, or 0.2%, to end at 2,555. The index tested 2,547 at the start trading with support at 2,540 holding. Resistance at 2,550-2,560 was split on the all-time high into the closing bell.

The Nasdaq advanced 16 points, or 0.3%, to close at 6,603. Tech kissed a low of 6,577 during the opening weakness with rising support at 6,575-6,550 holding. The push to 6,604 afterwards keeps all-time highs and resistance at 6,650-6,700 in the mix.

The Russell 2000 slipped a point, or 0.1%, to settle just under 1,507. The small-caps peaked at 1,510 during the first half of action with lower resistance at 1,515-1,525 holding for the 4th-straight session. Support remains at 1,500-1,490.

The S&P 500 Volatility Index ($VIX, 10.08, down 0.25) tested a high of 10.38 on the open with lower resistance at 10.50-11.50 holding. Upper support at 9.75-9.50 was breached on the late day low of 9.72 but held into the closing bell.

I have updated the parameters of our bullish F trade 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.


Ford (F, $12.38, down $0.01)

November 12 calls (F171117C00012000, $0.45, down $0.04)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: 0%
Stop Target: None

Action: Set an Exit Target at 90 cents. There is no Stop Limit.

Resistance is at $12.50. Support is at $12.25-$12.20. Earnings are due out October 26th.


Cypress Semiconductor (CY, $15.99, up $0.05)

CY November 16 calls (CY171117C00016000, $0.75, flat)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 67%
Stop Target: 50 cents (Stop Limit)

Action: Resistance is at $16-$16.25 with yesterday’s peak reaching $15.99. Support is at $15.50-$15.25.


Limelight Networks (LLNW, $4.21, down $0.02)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.55, flat)

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

Action: Wednesday’s low tapped $4.14. Support is at $4-$3.90. Resistance is at $4.25.


TherapeuticsMD (TXMD, $4.82, down $0.06)

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

TiVo (TIVO, $19.20, down $0.40)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.35, down $0.10)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -50%
Stop Target: None

Action: Fresh support is at $19-$18.75. Lowered resistance is at $19.50-$19.75.