Mid-Market Update for 10/25/2017

Bears Make an Appearance

3:25pm (EST)

The iShares Micro-Cap ETF (IWC) traded to an all-time high of $96.77 earlier this month but fell below a trading range between $95.75-$96.75 that lasted for eight trading sessions. I highlighted the lower lows that followed with the possibility of a backtest towards $94.50-$94. Last Thursday’s low tapped $94.24 to split support following the late September move above the latter. A close below $94-$93.50 would be a bearish development for continued weakness towards the $92-$91.50 area that served as the mid-September gap higher above these levels. Today’s low has tapped $93.39. Current resistance is at $94.50-$95.

As far as the overall market, the indexes have rebounded off the lows but major support levels are being challenged. The Dow is down 107 points to 23,334 while the S&P 500 is falling 12 points to 2,557. The Nasdaq is lower by 36 points to 6,561 and the Russell 2000 is off 8 points to 1,492.

I have updated our current trades 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, $12.03, down $0.16)

November 12 calls (F171117C00012000, $0.35, down $0.05)

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

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


Limelight Networks (LLNW, $4.79, down $0.01)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $0.95, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $1.20 (Limit Order on half at $1.20)
Return: 128%
Stop Target: 75 cents (Stop Limit)

Action: Support is at $4.75-$4.70 on a close below $4.90. Resistance is at $5-$5.25.


TherapeuticsMD (TXMD, $4.96, down $0.04)

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: Support is at $5-$4.90. Resistance is at $5.25.