Pre-Market Update for 10/31/2017

Tech Tags Record High

8:00am (EST)

The market closed slightly lower to start the week and ahead of a two-day FOMC meeting that begins today. The small-caps continue to lag and led today’s pullback with the Russell 2000 falling 1.2% and back below the 1,500 level. The Dow and S&P 500 closed mildly lower but held near-term support levels that had served as prior resistance. Meanwhile, the Nasdaq started slow but traded to an intraday all-time high of 6,727 before closing just below the 6,700 level.

Real Estate and Energy showed the most sector strength after posting gains of 0.6% and 0.5%, respectively. Healthcare and Consumer Staples led the laggards after falling 1.1% and 0.8%.

With October coming to a close, over the past month, Technology the sector leader with a gain of 6.7%. The Materials and Financial sectors are also up 4.8% and 4.2%, respectively. The Consumer Staples sector has fallen 1.7% over the past month. The only other sector laggard has been Energy with pullback of 1.6%.


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, $12.10, up $0.04)

November 12 calls (F171117C00012000, $0.30, flat)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -33%
Stop Target: None

Action: Resistance is at $12.15-$12.20. Support is at $12.00-$11.90.


Limelight Networks (LLNW, $4.90, up $0.02)

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: 157%
Stop Target: 75 cents (Stop Limit)

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


TherapeuticsMD (TXMD, $4.88, up $0.08)

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.