Pre-Market Update for 10/19/2017

Dow Blows Past 23,000/ Profit Alert (CY)

8:00am (EST)

The market continued its recent pattern of pushing fresh all-time highs while showing slight intraday weakness. The Dow and S&P 500 traded higher for the fourth-straight session while setting record highs for the sixth time in the past seven sessions. The Nasdaq rebounded to set another record high, as well, while the Russell 2000 was able to recover the 1,500 level during Wednesday’s action.

The Dow jumped 160 points, or 0.7%, to finish at 23,157. The blue-chips held positive territory throughout the session while pushing an all-time high of 23,172.93. Fresh resistance at 23,200-23,250 is firmly in play with a move above the latter leading to a blowoff top towards 23,500-23,550. Rising support is at 23,000-22,800.

The S&P 500 gained nearly 2 points, or 0.1%, to end at 2,561. The index also held green throughout Wednesday’s action while tapping a record high of 2,564. Lower resistance at 2,560-2,575 was cleared and held into the closing bell. Support remains at 2,550-2,540.

The Nasdaq added a half-point, or 0.01%, to close at 6,624. Tech tested a low of 6,613 for the second-straight session with upper support at 6,600-6,575 holding. Upper resistance at 6,625-6,650 was cleared on the record rebound to 6,635 and nearly held into the closing bell.

The Russell 2000 fell 5 points, or 0.3%, to settle at 1,497. The small-caps held positive territory throughout the session while peaking at 1,507. Resistance at 1,515-1,525 easily held. Support remains at 1,500-1,490.

The S&P 500 Volatility Index ($VIX, 10.07, down 0.24) peaked at 10.41 on the open lower resistance at 10.50-11.50 holding. Support at 9.75-9.50 held on the late day backtest to 9.87.

I have a Profit Alert for one of our current trades as CY pulled back below support into yesterday’s closing bell.


Momentum Options Play List

Closed Momentum Options Trades for 2017: 50-20 (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, $12.19, down $0.08)

November 12 calls (F171117C00012000, $0.35, down $0.03)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -27%
Stop Target: None

Action: Support is at $12.10-$12 with Wednesday’s low tapping $12.17. Resistance is at $12.40-$12.45.


Cypress Semiconductor (CY, $15.65, down $0.21)

CY November 16 calls (CY171117C00016000, $0.55, down $0.10)

Entry Price: $0.45 (10/2/2017)
Exit Target: $0.90
Return: 22%
Stop Target: 55 cents (Stop Limit)

Action: Our Stop Limit at 55 cents triggered yesterday with shares trading to a low of $15.56.


Limelight Networks (LLNW, $4.48, up $0.12)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.60, up $0.05)

Entry Price: $0.37 (9/21/2017)
Exit Target: $0.80-$1.20 (Limit Order on half at $1.20)
Return: 59%
Stop Target: None

Action: Set a Limit Order to close HALF the trade at $1.20.

Resistance is at $4.50 with shares testing $4.48 intraday. Support is at $4.20. After the close, shares were surging 14% to $5.10.


TherapeuticsMD (TXMD, $4.82, down $0.04)

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. Support is at $4.75-$4.70.