Pre-Market Update for 10/18/2017

Dow Clears 23,000/ Small-Caps Fail 1,500

8:00am (EST)

The bulls pushed record peaks for the fifth time in the past six sessions with the Dow and the S&P 500 closing higher for the third-straight session. The Dow cleared 23,000 intraday while the Nasdaq traded in a tight 15-point range and missed a fresh high by 4 points before finishing slightly lower. Meanwhile, the Russell 2000 made a lower low for the second-straight session while failing to hold 1,500. It was the first close below this level in 11 trading sessions, or the first time this month.

The Dow gained 40 points, or 0.2%, to settle at 22,997. The blue-chips slipped 8 points to 22,948 on the open with rising support at 22,800-22,600 easily holding. Fresh resistance at 23,000 was cleared on the record run to 23,002. Continued closes above the latter keeps 23,200-23,250 in play.

The S&P 500 added nearly 2 points, or 0.1%, to finish at 2,559. The index tested an intraday low of 2,554 upper support at 2,550-2,540 holding. The rebound to 2,559.71 set another all-time high with lower resistance at 2,560-2,575 holding for the third-straight session.

The Nasdaq slipped a third-point, or 0.01%, to end at 6,623. Tech traded down to 6,613 shortly after the open with upper support at 6,600-6,575 holding. A move below 6,550 would be a bearish development. Lower resistance at 6,625-6,650 held on the run to 6,628.

The Russell 2000 fell 5 points, or 0.3%, to close at 1,497. The small-caps kisses 1,505 during the first half of action with resistance at 1,515-1,525 holding. Support at 1,500-1,490 was split with the late day fade to 1,495. A close below the latter opens up risk to 1,475-1,470.

The S&P 500 Volatility Index ($VIX, 10.31, up 0.40) opened lower at 9.85 with the low reaching 9.78. Support at 9.75-9.50 held. The second half high tapped 10.46 with lower resistance at 10.50-11.50 holding.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 49-20 (71%). 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, $12.27, up $0.15)

November 12 calls (F171117C00012000, $0.38, up $0.08)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -22%
Stop Target: None

Action: Fresh resistance at $12.40-$12.45. Rising support is at $12.10-$12.


Cypress Semiconductor (CY, $15.86, down $0.02)

CY November 16 calls (CY171117C00016000, $0.65, down $0.05)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 44%
Stop Target: 55 cents (Stop Limit)

Action: Support at $15.75-$15.50 held on yesterday’s backtest to $15.81. Resistance remains at $16-$16.25.


Limelight Networks (LLNW, $4.36, up $0.04)

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

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20
Return: 49%
Stop Target: None

Action: Tuesday’s high reached $4.39. Resistance is at $4.50. Support is at $4.20.


TherapeuticsMD (TXMD, $4.86, up $0.01)

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

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -79%
Stop Target: None

Action: Resistance is at $5 with yesterday’s peak reaching $4.94. Rising support is at $4.75-$4.70.