Pre-Market Update for 11/12/2020

Tech Leads Lackluster Action/ Profit Alert (T)

8:00am (EST)

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.

Momentum Options Play List

Closed Momentum Options Trades for 2020: 40-11 (78%). 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 “Stops” entered to close any trades or “Limit 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 Daily‬ updates and Text Alerts.

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
Return: 100%
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.