Pre-Market Update for 2/12/2021

Blue-Chips Tag Record High

8:00am (EST)

The stock market was choppy on Thursday before closing mostly higher despite a slightly disappointing jobs number. Traders also digested a host of corporate earnings results while considering the Biden administration next moves to support the still coronavirus-stricken economy.

The Nasdaq showed the most strength after tagging a morning high of 14,058 while finishing at 14,025 (+0.4%). Near-term and lower resistance at 14,100-14,250 was challenged but held with a close above the latter signaling momentum towards 14,350-14,500.

The S&P 500 tested an opening high of 3,925 before ending at 3,916 (+0.2%). Key resistance at 3,925 was kissed but held. A close above this level and the recent peak at 3,931 would indicate additional upside towards 3,950-3,975.

The Russell 2000 reached a first half peak of 2,303 before closing at 2,285 (+0.1%). Near-term and lower resistance at 2,300-2,325 was tripped but held. A move above the latter and the record high at 2,318 would suggest a fresh breakout towards 2,335-2,360.

The Dow settled slightly lower at 31,430 (-0.02%) after trading to a record peak of 31,543. Current and lower resistance at 31,500-31,750 was breached but held for the second-straight. A close above the latter would indicate additional momentum towards the 32,000 level.

The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) fell for the first time in four sessions despite trading to a high of 23.25. Near-term and lower resistance at 23-23.50 was breached but held. A close above the latter and the 50-day moving average would signal a retest towards 24.50-25.

Support is at 21-20.50 followed by 20-19.50.

The Spiders Dow Jones Industrial Average ETF (NYSE: DIA) was up for the ninth-straight session after tagging an all-time intraday of $315.76. Unchartered territory and lower resistance at $315-$315.50 was cleared but held. A close above the latter would signal further momentum towards the $317-$317.50 area.

Rising support is at $313-$312.50 followed by $310.50-$310.

RSI remains in a slight uptrend with lower resistance at 65-70 holding. A close above the latter would suggest strength towards 75 and the late August/ early September high. Support is at 60.

The Consumer Discretionary Select Spiders (NYSE: XLY) extended its losing streak to three-straight sessions with the low reaching $169.26. Current and upper support at $169.50-$169 was tripped but held. A close below the latter would likely indicate additional weakness towards $168-$167.50.

Lowered resistance is at $171.50-$172 followed by $173-$173.50 with Monday’s all-time peak at $173.46.

RSI remains in a downtrend with upper support at 55-50 holding. A move below the latter would suggest a retest towards 45 and the January low. Key resistance is at 60.

The stock market is closed on Monday so out next update will be out on Tuesday morning.

Momentum Options Play List

Closed Momentum Options Trades for 2021: 4-1 (80%). 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.

Pfizer (PFE, $34.43, down $0.31)

PFE March 36 calls (PFE210319C00036000, $0.50, down $0.05)

Entry Price: $0.55 (2/10/2021)
Exit Target: $1.10
Return: -10%
Stop Target: None

Action: Shares tested a low of $34.28 with upper support at $34.25-$34 getting challenged but holding. Lowered resistance is at $34.75-$35 and the 200-day moving average.

iShares MSCI Emerging Markets ETF (EEM, $57.75, up $0.61)

EEM March 58 calls (EEM210319C00058000, $1.30, up $0.20)

Entry Price: $0.65 (2/5/2021)
Exit Target: $1.30, raise to $1.85 (closed half at $1.40 on 2/11/2021)
Return: 109%
Stop Target: $1.00 (Stop Limit)

Action: Raise the Exit Target from $1.30 to $1.85 on the other half of the trade.

Thursday’s new 52-week high reached $57.99 with unchartered territory and lower resistance at $57.75-$58 getting cleared and holding. Rising support is at $57.25-$57.