Pre-Market Update for 10/13/2017

Financial Sector Pulls Back on Earnings

8:00am (EST)

The market traded mostly lower throughout Thursday’s session as the start of 3Q earnings season gets underway. The financials were in the spotlight and led the laggards despite upbeat earnings from the sector. The Dow and S&P 500 did show midday strength by setting fresh record highs but closed in the red along with the Nasdaq. The Russell 2000 also finished slightly lower but continues to hold the 1,500 level.

The Dow fell 31 points, or 0.1%, to finish at 22,841. The blue-chips opened lower but traded to an all-time high of 22,884 intraday. Lower resistance at 22,850-23,000 held before the fade to 22,821. Support at 22,600 easily held with risk to 22,400-22,350 on a move below this level.

The S&P 500 slipped 4 points, or 0.2%, to end just under 2,551. The index tested a record high of 2,555 at the start trading with with lower resistance at 2,560-2,575 holding. Support at 2,540 is back on play following the backtest to 2,548 into the closing bell. A close below this level could lead to a retest to 2,525-2,520.

The Nasdaq dropped 12 points, or 0.2%, to close at 6,591. Tech made an intraday run to 6,613 and another record high to keep resistance at 6,650-6,700 in the mix. The opening low of 6,586 held support at 6,575-6,550 holding.

The Russell 2000 gave back nearly 2 points, or 0.1%, to settle at 1,505. The small-caps bottomed at 1,501 at the start of trading with support at 1,500-1,490 holding. There is risk to 1,475-1,470 on a move below the latter. Resistance at 1,515-1,525 held on the brief trip into positive territory to 1,508.

The S&P 500 Volatility Index ($VIX, 9.91, up 0.06) tested a high of 10.33 on the open with lower resistance at 10.50-11.50 holding. Support at 9.75-9.50 was split following the low of 9.65 afterwards.

I have the Stop Limit on CY by a nickel.


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, $12.12, down $0.26)

November 12 calls (F171117C00012000, $0.35, down $0.10)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -21%
Stop Target: None

Action: Support is at $12 with yesterday’s low tapping $12.11. Resistance is at $12.25.


Cypress Semiconductor (CY, $15.76, down $0.23)

CY November 16 calls (CY171117C00016000, $0.65, down $0.10)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 47%
Stop Target: 50 cents, raise to 55 cents (Stop Limit)

Action: Raise the Stop Limit from 50 cents to 55 cents.

Support is at $15.75-$15.50. Resistance is at $16.


Limelight Networks (LLNW, $4.30, up $0.09)

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: Resistance is at $4.25. Support is at $4-$3.90.


TherapeuticsMD (TXMD, $4.68, down $0.14)

TXMD December 7.50 calls (TXMD171215C00007500, $0.20, down $0.05)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -78%
Stop Target: None

Action: Shares traded to a low of $4.59 yesterday. Support is at $4.50. Resistance is at $4.75-$5.

TiVo (TIVO, $18.50, down $0.70)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.20, down $0.15)

Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -71%
Stop Target: None

Action: Fresh support is at $18.50-$18.25. Lowered resistance is at $18.75.