MomentumOptions.com Pre-Market Update for 9/22/2017
Dow’s Win Streak Snapped at 10-straight
8:00am (EST)
The market was slightly weak for much of the session with the S&P 500 and Nasdaq failing to break into positive territory on Thursday. The Dow saw a little daylight on the open but relinquished its 10-session winning streak with its lower finish. Meanwhile, the Russell 2000 showed some strength after coming within 4 points of a fresh all-time high but also closed slightly lower. Most sectors finished in the red with Consumer Staples leading to the downside. The Industrial and the Financial sectors were the standouts, rising 0.3% and 0.2%, respectively.
The Dow fell 53 points, or 0.2%, to settle at 22,359. The blue-chips tested a low of 22,356 ahead of the closing bell with support at 22,200-22,100 holding. Resistance is at 22,400-22,500.
The S&P 500 declined 7 points, or 0.3%, to finish at 2,500. The index kissed 2,499 ahead of the close with support at 2,480-2,475 easily holding. Resistance remains at 2,515-2,525.
The Nasdaq gave back 33 points, or 0.5%, to end at 6,422. Tech traded down to 6,405 intraday with lower support at 6,425-6,400 holding by a nickel. Resistance at 6,475-6,525 is still in play with a close above the former ahead of the weekend being a bullish development.
The Russell 2000 slipped a point, or 0.1%, to close at 1,444. The small-caps held positive territory for much of the session with the intraday high tapping 1,448. Upper resistance at 1,445-1,450 held and remains in play. Rising support at 1,435-1,430 with the morning low kissing 1,441.
The S&P 500 Volatility Index ($VIX, 9.67, down 0.11) bubbled up to 10.21 on the open with resistance at 11-11.50 holding. The intraday low reached 9.54 with upper support at 9.50-9.25 holding.
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Closed Momentum Options Trades for 2017: 48-19 (72%). 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.
Limelight Networks (LLNW, $3.96, up $0.04)
LLNW December 4 calls (LLNW171215C00004000, $0.37, down $0.03)
Entry Price: $0.37 (9/13/2017)
Exit Target: $0.80-$1.20
Return: 0%
Stop Target: None
Action: Resistance is at $4-$4.10. My yearend target is $5-$5.50. Support is at $3.80-$3.75. I have followed this company for years and shares are finally starting to show strong momentum. More to come.
Cisco Systems (CSCO, $32.70, up $0.10)
CSCO October 32 calls (CSCO171020C00032000, $0.85, up $0.10)
Entry Price: $0.50 (9/13/2017)
Exit Target: $1.00
Return: 70%
Stop Target: 58 cents, raise to 70 cents (Stop Limit)
Action: Raise the Stop Limit from 58 cents to 70 cents.
Shares traded up to $32.90 yesterday to test upper resistance at $32.75-$33. Support remains at $32.25-$32.
TherapeuticsMD (TXMD, $6.23, down $0.08)
TXMD December 7.50 calls (TXMD171215C00007500, $0.70, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -26%
Stop Target: None
Action: Upper support at $6.25-$6 was breached with Thursday’s low tapping $6.11. Lowered resistance is at $6.50.
TiVo (TIVO, $19.00, up $0.05)
TIVO October 20 calls (TIVO171020C00020000, $0.45, flat)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -36%
Stop Target: None
Action: Resistance is at $19.25. Support at $18.75.