Mid-Market Update for 10/20/2017

Bulls Continue Record High Push

3:40pm (EST)

The Consumer Staples Select Spiders (XLP) recently failed to hold resistance at $54.75-$54.50 and the 50-day moving average following Monday’s drop below these levels. Today’s backtest to $53.73 held July and early October support at $53.75-$53.50 with a move below the latter being a continued bearish development. A close below $53.50 would likely lead to a continued backtest towards $52.50-$50. The 52-week low is at $49.98. Current resistance is at $54.25 and the 200-day moving average.

The 50-day moving average remains in a downtrend and appears to be headed below the 200-day moving average. This would form a death cross and represent another bearish signal. RSI is showing signs of continued weakness and a backtest towards 40-35.

As far as the market, record highs remain in play. The Dow is up 147 points to 23,310 while the S&P 500 is adding 11 points to 2,574. The Nasdaq is advancing 24 points to 6,629 and the Russell 2000 is gaining 7 points to 1,509.

I have updated our current trades ahead of the weekend so lets go check the tape.

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, $12.09, up $0.01)

November 12 calls (F171117C00012000, $0.35, flat)

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

Action: Resistance is at $12.40-$12.45. Support is at $12.10-$12.


Limelight Networks (LLNW, $4.97, up $0.26)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $1.00, up $0.15)

Entry Price: $0.37 (9/21/2017)
Exit Target: $1.20 (Limit Order on half at $1.20)
Return: 165%
Stop Target: 50 cents (Stop Limit)

Action: Resistance is at $4.75-$5. Support is at $4.40-$4.35.


TherapeuticsMD (TXMD, $5.20, up $0.35)

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 $5.25. Rising support is at $5-44.90 followed by $4.75-$4.70.