Mid-Market Update for 10/23/2017

Opening Gains Fade

3:40pm (EST)

The Russell 2000 ETF (IWM) has lagged the recent overall market gains following the breakout above the $148 level at the beginning of the month. The series of lower highs and lower lows held near-term support at $148 with last Thursday’s backtest to $148.17. Friday’s rebound to $150.41 failed the all-time high at $150.68. A close above upper resistance at $150.50-$150.75 would be a bullish development for a possible push towards $152-$152.50 over the near-term. A move below $148-$147.75 could lead to a continued backtest towards $145 to retrace the gap higher from the breakout above this level in late September. RSI is in a downtrend after failing resistance at the 70 level. A move below 60 would be a bearish development.

The bulls set record highs on the open but today’s slight pullback was nearly a given following Friday’s breakout. The Dow is down 16 points to 23,312 while the S&P 500 is slipping 7 points to 2,567. The Nasdaq is off 36 points to 6,592 and the Russell 2000 is lower by 8 points to 1,500.

I have updated our current trades ahead of the close so let’s 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, $12.06, down $0.04)

November 12 calls (F171117C00012000, $0.35, flat)

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

Action: Support is at $12.10-$12. Resistance is at $12.20-$12.25.


Limelight Networks (LLNW, $4.97, up $0.01)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $1.05, flat)

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 $5-$5.25. Support is at $4.75-$4.70.


TherapeuticsMD (TXMD, $5.00, down $0.10)

TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -72%
Stop Target: None

Action: Resistance is at $5.25. Support is at $5-$4.90 followed by $4.75-$4.70.