MomentumOptions.com Pre-Market Update for 11/13/2020

Bears Make an Appearance

8:00am (EST)

Wall Street closed lower on Thursday following ongoing news in the spike of coronavirus cases and fresh lockdowns in Chicago and tighter restrictions in other states. A continued breakdown in stimulus talks also weighed on sentiment after the Trump administration said it was leaving negotiations on a new stimulus package up to Congress.

The Russell 2000 tapped a low of 1,696 before finishing flat at 1,708 (-1.6%). Near-term and upper support at 1,700-1,685 was tripped but held. A move below the latter would indicate a further slide towards 1,675-1,660.

The Dow settled at 29,080 (-1.1%) with the afternoon low tapping 28,902. Current and upper support at 29,000-28,750 was breached but held. A drop below the latter would suggest a retest towards 28,500-28,250.

The S&P 500 tested a late session low of 3,518 before settling at 3,537 (-1%). Current and upper support at 3,525-3,500 was cracked but held. A move below the latter would signal further downside risk towards 3,475-3,450.

The Nasdaq traded down to 11,666 ahead of the closing bell while finishing at 11,709 (-0.7%). Near-term and upper support at 11,700-11,600 was breached but held. A close below the latter would indicate another retest towards 11,500-11,400.

The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was up for the second-straight session after closing on the session peak of $158.39. New and lower resistance at $158-$158.50 was cleared and held. A close above the the latter would signal additional upside towards $159.50-$160.

Rising support is at $157.50-$157.

The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for just the second time in nine sessions following the late day bounce to 27.27. Lower resistance at 27-27.50 was breached but held. A close above the latter reopens upside risk towards 28.50-29 and the 50-day moving average.

Support is at 25-24.50 followed by 23-22.50.

The iShares Russell Growth 1000 ETF (NYSEArca: IWF) fell for the third time in four sessions with the intraday low tapping $223.84. Near-term and upper support at $224-$223.50 was breached but held. A close below the latter would indicate further weakness towards $222.50-$222.

Resistance is at $226.50-$227 followed by $228-$228.50.

RS is in a slight downtrend with upper support at 55-50 failing to hold. A move above the latter would suggest additional weakness towards 45-40 and prior levels from late October. Key resistance is at 60.

The Materials Select Sector Spider Fund (NYSE: XLB) was down for the second-straight session after tagging a late day low of $67.40. New and upper support at $67.50-$67 was breached but held. A close below the latter would be a bearish signal for a retest towards $66.50-$66.

Lowered resistance is at $68-$68.50 followed by $69.50-$70.

RSI remains in a downtrend with upper support at 55-50 holding. A move below the latter would suggest additional weakness towards 45-40 and late October lows. Resistance is at 60.

It is rare that I don’t have at least one open position and something that hasn’t happened in quite a few years. However, we were out of our bullish positions before yesterday’s market pullback so we did a great job in locking up premium, including our 11th triple-digit winner of the year.

I could have a New Trade this morning on FCX but I want to see how shares open. If I take action, I will send out a Trade Alert along with a text.

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.

No open positions