MomentumOptions.com Mid-Market Update for 10/13/2017

Retail Sector Struggling

3:50pm (EST)

The Spider S&P Retail ETF (XRT) has been in a steady downtrend following failed resistance at $42 for seven trading sessions. Wednesday’s backtest held a downward sloping 50-day moving average but yesterday’s close below this level continues to be a bearish signal. Fresh support is at $39.50 held with a close below this level and prior August resistance being a continued bearish development. Lowered resistance is at $40-$40.50 with today’s high tapping $40.39. RSI is trying to rebound and is signaling slightly oversold conditions.

The Dow is up 33 points to 22,874 while the S&P 500 is adding 3 points to 2,554. The Nasdaq is advancing 14 points to 6,605 and the Russell 2000 is down a point to 1,504.

I have been looking at a number of possible trades for next week and why I’m running a little late today. While there are a couple I really like, let’s wait to see how Monday’s open goes before adding fresh positions. I have updated the current trades ahead of the weekend.

 

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, $12.09, down $0.03)

November 12 calls (F171117C00012000, $0.35, flat)

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

Action: Support is at $12-$11.75. Resistance is at $12.25.

 

Cypress Semiconductor (CY, $15.88, up $0.11)

CY November 16 calls (CY171117C00016000, $0.65, flat)

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

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

 

Limelight Networks (LLNW, $4.35, up $0.05)

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, $4.60, down $0.08)

TXMD December 7.50 calls (TXMD171215C00007500, $0.20, flat)

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

Action: Support is at $4.50. Resistance is at $4.75-$5.

TiVo (TIVO, $18.75, up $0.25)

TIVO ‪October 20‬ calls (TIVO171020C00020000, $0.20, flat)

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

Action: Resistance is at $18.75. Support is at $18.50-$18.25.