Mid-Market Update for 11/3/2017

Consumer Staples Struggling

3:20pm (EST)

The Consumer Staples Select Spiders (XLP) recently set a multi-month low of $52.61 with longer-term support at $52.50 holding. A move below this level opens up risk to $51-$50 with the 52-week low at $49.98. Current resistance is at $53.25-$53.50.

The 50-day moving average has moved below the 200-day moving average to form a death cross. This is typically a bearish signal for lower lows. RSI failed resistance at 40 and appears headed for another backtest towards 35-30.

Heading into the final hour of trading, the Dow is up 18 points to 23,534 while the S&P 500 is gaining 8 points to 2,588. The Nasdaq is higher by 47 points to 6,762 and the Russell 2000 is off a point to 1,495.

Enjoy the weekend.


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, $17.40, down $0.55)

January 20 calls (TIVO180119C00020000, $0.30, down $0.30)

Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -50%
Stop Target: None

Action: Fresh support is at $17.25-$17. Resistance is at $17.75-$18.


Ford (F, $12.33, down $0.09)

November 12 calls (F171117C00012000, $0.45, flat)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: 0%
Stop Target: None

Action: Resistance at $12.40-$12.50. Support is at $12.10-$12.


Limelight Networks (LLNW, $5.22, up $0.02)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $1.30, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $2.00 (Limit Order on half at $2)
Return: 245%
Stop Target: $1 (Stop Limit)

Action: Resistance is $5.35-$5.40. Support is at $5.25-$5.20.


TherapeuticsMD (TXMD, $4.44, down $0.17)

TXMD December 7.50 calls (TXMD171215C00007500, $0.10, down $0.10)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -89%
Stop Target: None

Action: Support is at $4.50. Resistance is at $4.75-$4.80.