Pre-Market Update for 11/20/2017

Small-Caps Clear 1,500/ Trial Text Alerts

8:00am (EST)

U.S. markets traded higher across the board with near-term resistance and all-time highs holding. The Russell 2000 showed the most strength after rising 0.7% while clearing the 1,500 level. The Dow gained 0.3% to clear the 23,400 level and is less than 1% away from a record high. The S&P 500 and Nasdaq advanced 0.1% while finishing just below 2,600 and 6,800, respectively, and also remain within striking distance of lifetime highs.

Financials and Industrials showed the most strength after gaining 0.5% while Technology added 0.4%. Laggards included Health Care and Utilities fell 0.4% and 0.3% while Energy and Real Estate dipped 0.2%.

The VelocityShares Daily Inverse VIX (ZIV) traded higher for the 3rd-straight session after making a run to 79.05. Fresh resistance at 79.50-80 held with a move above the latter likely leading to continued market strength. Rising support is at 78-77.50 and the 50-day moving average. RSI cleared resistance at 50 and a level that held throughout August.

The Spiders S&P MidCap 400 ETF (MDY) traded to a fresh all-time following today’s run to $336.36. New resistance is at $336.75-$337.50 on continued closes above $336-$335.75 and the prior high of $335.71 that was reached earlier this month. Support is at $334-$333.50 on a close back below $335.50. RSI recently held early September support near the 50 level with continued closes above 60 being a bullish development.

The Consumer Discretionary Select Spiders (XLY) continue to show strength following the recent breakout above the $92.50 level with today’s all-time reaching $93.92. Fresh resistance is at $94-$94.50 on continued closes above $93.50. Rising support is at $93-$92.50 with a move below the latter signaling a short-term top. RSI is approaching early October resistance at 70 and a level that also held in early June and July.

I have updated our current trades so let’s go check the tape.

Special Notice: As many of you know, I’m on a traveling business/ vacation until next Monday and why I’ve skipped a few afternoon updates. I should be back to a routine schedule starting next week but I’m still doing Trade Alerts, as needed. The good news is that I want to try to send text alerts this week so please send me an email to with you number if you would like to receive them. They will be free and I should have the service up and running by the first week of December with trial runs starting this week.

Momentum Options Play List

Closed Momentum Options Trades for 2017: 50-21 (70%). 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.

Bank of America (BAC, $26.74, up $0.12)

BAC January 28 calls (BAC180119C00028000, $0.52, flat)

Entry Price: $0.63 (11/16/2017)
Exit Target: $1.25
Return: -17%
Stop Target: None

Action: Resistance is at $26.75-$26 with Monday’s high tapping $26.84. Support is at $26.50-$26.25.

Rambus (RMBS, $15.07, up $0.29)

RMBS January 15 calls (RMBS180119C00015000, $0.60, up $0.05)

Entry Price: $0.35 (11/16/2017)
Exit Target: $0.70
Return: 65%
Stop Target: None

Action: Set an initial Stop Limit at 40 cents to start protecting profits.

Upper resistance at $14.75-$15 was cleared with yesterday’s high reaching $15.10 and a fresh 52-week peak. Rising support is at $14.75-$14.50. My near-term target is $17.50-$18 on continued strength.

TiVo (TIVO, $17.50, up $0.08)

January 20 calls (TIVO180119C00020000, $0.55, flat)

Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -8%
Stop Target: None

Action: Support is at $17.25-$17. Resistance is at $17.50-$17.75.

A decision on TiVo’s patent fight against Comcast (CMCSA) is due out today. Shares could make a substantial move towards $20 on good news.

Limelight Networks (LLNW, $5.80, up $0.08)

LLNW ‪December 4‬ calls (LLNW171215C00004000, $1.80, flat)

Entry Price: $0.37 (9/21/2017)
Exit Target: $2.50 (Limit Order on half at $2.50)
Return: 386%
Stop Target: $1.70 (Stop Limit)

Action: Resistance is at $5.90-$6 with Monday’s high kissing $5.93. Support at $5.75-$5.70. These options have 24 days before expiration and I’m still expecting a run towards $6.50 by mid-December.

TherapeuticsMD (TXMD, $5.90, up $0.05)

TXMD December 7.50 calls (TXMD171215C00007500, $0.15, flat)

Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -84%
Stop Target: None

Action: Support is at $5.75-$5.50. Resistance is at $6-$6.25.