MomentumOptions.com Mid-Market Update for 11/8/2017

Transports Fall Below 50-Day Moving Average

2:10pm (EST)

The Dow Jones Transportation Average ($TRAN) recently formed a triple-top peak on its run towards and above the 10,000 level throughout October. Tuesday’s close below the 50-day moving average was a slightly bearish development with today’s low tapping 9,596. Current support is at 9,600-9,550. Resistance is at 9,700-9,750 and represents the mid-September double-top breakout above this level.

Chart

The divergence between the Dow and the Dow Transports is a little troublesome as the two tend to trade in tandem. This could signal a pullback in the blue-chips, at some point, if there is continued weakness in the Transports. RSI has been in a downtrend throughout the month with risk to late July support near the 30 level.

Heading into the final hours of trading, the Dow is up 8 points to 23,565 while the S&P 500 is gaining 2 points to 2,593. The Nasdaq is higher by 14 points to 6,782 and the Russell 2000 is off a point to 1,478.

I’m working on two possible New Trades so stay locked-and-loaded into the closing bell in case I take action.

 

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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, $17.90, up $0.45)

January 20 calls (TIVO180119C00020000, $0.50, up $0.20)

Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -18%
Stop Target: None

Action: Resistance is at $18-$18.25. Support is at $17.50-$17.25.

 

Ford (F, $12.04, down $0.12)

November 12 calls (F171117C00012000, $0.15, down $0.05)

Entry Price: $0.45 (10/11/2017)
Exit Target: $0.90
Return: -64%
Stop Target: 10 cents (Stop Limit)

Action: Support is at $12. Resistance is at $12.15-$12.20.

 

Limelight Networks (LLNW, $5.68, up $0.16)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $1.65, up $0.10)

Entry Price: $0.37 (9/21/2017)
Exit Target: $2.00 (Limit Order on half at $2)
Return: 337%
Stop Target: $1.25 (Stop Limit)

Action: Resistance is at $5.75-$6. Support is at $5.40-$5.35.

 

TherapeuticsMD (TXMD, $5.38, down $0.19)

TXMD December 7.50 calls (TXMD171215C00007500, $0.25, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -73%
Stop Target: None

Action: Support is at $5.25. Resistance is at $5.50-$5.75.