Pre-Market Update for 10/24/2017

Nasdaq Fails 6,600

8:00am (EST)

The bulls pushed fresh all-time highs on Monday’s open but spent the market spent the remainder of the session in a tight range before finishing slightly lower. The pullback ended six-session winning streaks for the Dow and S&P 500 with near-term support holding. The Nasdaq closed back below 6,600 for the first time in six sessions while the Russell 2000 failed to hold the 1,500 level for only the second time this month.

The Dow fell 54 points, or 0.2%, to close at 23,273. The blue-chips traded to an all-time of 23,368 with fresh resistance at 23,500-23,550 easily holding. Fresh support at 23,200-23,100 held on the fade to the session low into the close.

The S&P 500 slipped 10 points, or 0.4%, to settle just under 2,565. The index made a run to a lifetime high of 2,578 on the open with fresh resistance at 2,600-2,625 holding. Support at 2,560-2,550 held on the backtest to session lows.

The Nasdaq declined 42 points, or 0.6%, to finish at 6,586. Tech kissed a morning high of 6,641 with upper resistance at 6,625-6,650 holding. Lower support at 6,600-6,575 held with a close below 6,550 being a bearish development.

The Russell 2000 declined 11 points, or 0.8%, to end at 1,497. The small-caps made a push to 1,511 on the open with resistance at 1,515-1,525 holding. Upper support at 1,500-1,490 on the close near the session low. There is risk to 1,475-1,470 on a move below the latter.

The S&P 500 Volatility Index ($VIX, 11.07, up 1.10) traded to the upside following a first half low of 9.94 with support at 9.75-9.50 holding. Resistance at 10.50-11.50 was split with the high tapping 11.08.

I could have New Trades today so stay locked-and-loaded.


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, $12.04, down $0.06)

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, $4.93, down $0.03)

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, $4.94, down $0.16)

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: Upper support at $5-$4.90 was breached on yesterday’s backtest to $4.91. Resistance is at $5.25.