Pre-Market for 11/29/2017

Another Breakout to Fresh All-Time Highs/ New Trade (VIAV)

8:00am (EST)

The market traded to fresh all-time highs throughout Tuesday’s session despite pulling back midday on news that North Korea has fired another ballistic missile. The Dow gained 1.1% after testing 23,849 to pull within 1% of clearing the 24,000 level. The S&P 500 made a record run to 2,627 after rising 1% while holding the 2,600 level for the 3rd-straight session.

The Nasdaq reached a lifetime peak of 6,914 after rising 0.5% into the closing bell despite slipping into negative territory intraday. The Russell 2000 cleared its previous record peak of 1,524 to reach an all-time high of 1,536 while holding positive territory throughout the session.

Financial stocks led to the upside with the sector rocketing 2.6% followed by Industrials and Materials which rose 1.5% and 1.1%, respectively. Real Estate was slightly weak and was the only sector in the red after slipping 0.2%.

In economic news, U.S. chain store sales dipped 0.4% in the week ending November 25th, after jumping 1.2% in the prior week.

The Advanced Indicators Goods Trade gap for October trade in goods widened to $68.3 billion from $64.1 billion in the last goods and services trade report. Forecasts were for a deficit of $65.7 billion.

FHFS House Price Index rose 0.3% to 253 in September slightly below expectations for a rise of 0.35%.

S&P Corelogic Case-Shiller Case-Shiller 20-City Composite Home Price Index was up 0.5% to 203.50 month-over-month versus expectations for a decline of 0.25% to 202.4 in September.

November Consumer Confidence checked in at 129.5 versus forecasts for 124.5.

Richmond Fed Manufacturing Index surged 18 points to 30 versus expectations for a print of 15.

The Spider S&P Retail ETF (XRT) surged 3% to clear major resistance at $42 after testing a high of $42.93. Fresh resistance is at $43-$43.25 and levels that held in April. I mentioned earlier this month the 50-day moving average was on track to clear a descending 200-day moving average and would form a golden-cross once completed. This is typically a bullish signal and remains in play. New support is at $42.50-$42.25 with a move back below $42 being a bearish signal.

RSI is back in an uptrend with September resistance at 70 in play. Continued closes above this level should lead to further strength.

I have a New Trade this morning so let’s get on it!

Momentum Options Play List

Closed Momentum Options Trades for 2017: 52-21 (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.

New Trade!

Viavi Systems (VIAV, $9.29, up $0.21)

Buy to Open VIAV January 9 calls (VIAV180119C00009000, $0.55, up $0.05)

Action: I like these call options at current levels and you can use Limit Orders up to 65-70 cents to get the best fills. These are the regular VIAV January 9 calls that expire on January 19th, 2018.

Current Trades

Twitter (TWTR, $21.83, up $0.01)

TWTR January 24 calls (TWTR180119C00024000, $0.55, flat)

Entry Price: $0.70 (11/22/2017)
Exit Target: $1.40
Return: -21%
Stop Target: None

Action: Resistance is at $22-$22.25. Support is at $21.75-$21.50.

Bank of America (BAC, $27.64, up $1.05

BAC January 28 calls (BAC180119C00028000, $0.82, up $0.40)

Entry Price: $0.63 (11/16/2017)
Exit Target: $1.25
Return: 32%
Stop Target: None

Action: Tuesday’s high tapped $27.70. Fresh resistance is at $27.75-$28. The 52-week peak is at $27.98. Rising support is at $27.50-$27.25.

TiVo (TIVO, $18.10, up $0.10)

January 20 calls (TIVO180119C00020000, $0.45, flat)

Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -25%
Stop Target: None

Action: Lower resistance at $18.25-$18.50 held on yesterday’s high. Support is trying to move up to $18-$17.75.

TherapeuticsMD (TXMD, $6.02, up $0.03)

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