MomentumOptions.com Pre-Market Update for 11/12/2020
Tech Leads Lackluster Action/ Profit Alert (T)
Wall Street closed on both sides of the ledger on Wednesday with Tech outperforming to snap a two-session losing streak. A continued surge in coronavirus cases and fresh restrictions upcoming in New York this Friday weighed on sentiment.
The blue-chips and the small-caps were underachievers with both closing slightly lower for the first time this week. Meanwhile, volatility continued to ease after closing below a key level of support.
The Nasdaq closed at 11,786 after testing a late day peak of 11,793. Lower resistance from last Thursday at 11,800-11,900 was challenged but held. A close above the latter would signal a retest towards 12,000-12,100 with Monday’s all-time top at 12,108.
The S&P 500 ended at 3,572 (+0.8%) after topping out at 3,581. Current and lower resistance at 3,575-3,600 was cleared but held. A close above the latter would suggest additional strength towards 3,625-3,650 with the record high from Monday at 3,645.
The Russell 2000 tested a morning low of 1,722 before finishing flat at 1,736 (-0.00%). Fresh and upper support at 1,725-1,715 was breached but held. A move below the latter would indicate a further slide towards 1,700-1,685. Below is a chart of the IWM.
The Dow settled at 29,397 (-0.1%) with the afternoon low tapping 29,281. New and upper support at 29,250-29,000 was challenged but held. A drop below the latter would suggest a retest towards 28,750-28,500.
I have another Profit Alert this morning, our 12th-straight winner since mid-August.
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AT&T (T, $28.73, down $0.12)
T December 28 calls (T201218C00028000, $1.15, down $0.10)
Entry Price: $0.55 (10/29/2020)
Exit Target: $1.60
Stop Target: 85 cents, raise to $1.10 (Stop Limit)
Action: The Stop Limit at $1.10 was tripped with the options testing a low of 99 cents yesterday. We could get back in an AT&T position if shares reclaim the $29 level.