Pre-Market Update for 11/1/2017

Tech Tags Another All-Time High

8:00am (EST)

The market closed higher ahead of Wednesday’s FOMC announcement with the Dow and S&P 500 posting their 7th-straight monthly gain. The Nasdaq set another all-time high of 6,737 while closing above the 6,700 level for the second time in three sessions. Meanwhile, the Russell 2000 led the major indexes with a gain of 0.8% after closing back above the 1,500 level.

The Dow gained 28 points, or 0.1%, to finish at 23,377. The blue-chips tested a low of 23,334 shortly after the open with support at 23,200-23,100 holding. There is risk to 23,000-22,800 on a move below the latter. The rebound to 23,406 failed lower resistance at 23,500-23,550.

The S&P 500 added 2 points, or 0.1%, to settle at 2,575. The index made a backtest to 2,572 during the opening action with support at 2,560-2,550 easily holding. The 3/4-point pullback was followed by a run to 2,578 to clear upper resistance at 2,570-2,575. Continued closes above the latter and the all-time high just south of 2,583 opens the door for a push towards 2,600.

The Nasdaq jumped 28 points, or 0.4%, to close at 6,727. Tech held positive territory throughout the session while kissing a fresh lifetime high of 6,737. Fresh resistance is at 6,775-6,800. Rising support is at 6,700-6,675 with a move below 6,650 being a cautious signal.

The Russell 2000 was up 11 points, or 0.8%, to end at 1,502. The small-caps also held green while peaking at 1,506. Lower resistance at 1,500-1,510 was cleared with a move above the latter being a bullish development. Support is at 1,485-1,480.

The S&P 500 Volatility Index ($VIX, 10.82, down 0.32) traded to a low of 9.90 with upper support at 10-9.75 holding. Resistance remains at 11.50-12.50 with a move above 13.50 being a bearish development.

From desk to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx).

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.


TiVo (TIVO, $18.15, up $0.05)

January 20 calls (TIVO180119C00020000, $0.60, up $0.05)

Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: 0%
Stop Target: None

Action: Resistance is at $18.25-$18.50. Support is at $18-417.75 with a close below $17.50 being a bearish development.


Ford (F, $12.27, up $0.17)

November 12 calls (F171117C00012000, $0.40, up $0.10)

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

Action: Resistance is at $12.40-$12.50 following yesterday’s run to $12.30. Support is at $12.10-$12.


Limelight Networks (LLNW, $4.95, up $0.05)

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: Resistance is at $5-$5.25 with Tuesday’s peak reaching $4.99. Support is at $4.75-$4.70.


TherapeuticsMD (TXMD, $4.72, down $0.16)

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: Support is at $4.75-$4.70 with risk to $4.50 on a close below the latter. Resistance is at $5.