MomentumOptions.com Pre-Market for 1/24/2018
Dow Closes Slightly Lower
8:00am (EST)
The market closed mostly higher to continue their run towards all-time highs after the President signed a stopgap funding bill to end the government shutdown.
The Nasdaq showed the most strength after rising 0.7% and trading to an intraday record high of 7,465. The Russell 2000 was higher by 0.4% after testing a lifetime peak of 1,612 while closing above the 1,600 level for the second-straight session.
The S&P 500 kissed an all-time high of 2,842 after adding 0.2% for the session. Meanwhile, the Dow fell 3 points, or 0.01% after trading to an intraday and lifetime high of 26,246.
Real Estate and Utilities were sector standouts after rallying 1.5% and 1%. Health Care and Consumer Staples were slightly weak with the sectors falling 0.5% and 0.3%, respectively.
The Russell 2000 ETF (IWM) traded to an all-time high of $160.30 with fresh resistance at $160-$161.50 holding. Rising support is at $158.50-$158 with a close below the latter being a slightly bearish development and signaling a possible short-term top.
RSI is approaching January and November resistance at 70 with continued closes above this level being a bullish development. A close back below 65-60 would likely signal a short-term top.
The Spider Gold Shares (GLD) traded up $127.35 and is testing September resistance at $127.50-$128. A close above the latter could lead to a run towards $129.50-$130. Rising support is at $126.50-$126.
RSI is in a slight uptrend but is facing January and early September resistance at 70-75. Continued closes above the latter would be a bullish signal. Support is at 65 with a move below 60 being a warning signal.
I have set the parameters for our CNX and CY trades along with the rest of our current positions.
Momentum Options Play List
Closed Momentum Options Trades for 2018: 5-1 (83%). 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.
CNX Resources (CNX, $14.65, up $0.14)
CNX February 15 calls (CNX180216C00015000, $0.50, up $0.13)
Entry Price: $0.50 (1/23/2018)
Exit Target: $1.00
Return: 0%
Stop Target: None
Action: Shares tested a high of $15.10 on Tuesday with resistance at $15-$15.25 holding. A close above the latter could lead to a run towards $16.25-$16.50 and fresh 52-week peaks. Support is at $14.50-$14.25. Earnings are due out January 30th.
Cypress Semiconductor (CY, $17.75, up $0.05)
CY February 18 calls (CY180216C00018000, $0.60, up $0.03)
Entry Price: $0.60 (1/23/2018)
Exit Target: $1.20
Return: 0%
Stop Target: None
Action: Fresh resistance is at $18-$18.25 with yesterday’s 52-week peak reaching $17.90. Support is at $17.50-$17.25. Earnings are due out February 1st.
Blackberry (BB, $13.53, up $0.26)
BB March 15 calls (BB180316C00015000, $0.35, up $0.05)
Entry Price: $0.47 (1/16/2018)
Exit Target: $1.00
Return: -26%
Stop Target: None
Action: Resistance is at $13.75-$14 following Tuesday’s test to $13.55. Support is at $13.25-$13.
Apache (APA, $47.77, up $0.11)
APA February 50 calls (APA180216C00050000, $1.05, up $0.05)
Entry Price: $1.07 (1/16/2018)
Exit Target: $2.10
Return: -2%
Stop Target: None
Action: Support at $47-$46.75 held on yesterday’s backtest to $46.82. Resistance is at $48-$48.25.
Cadence Design Systems (CDNS, $45.75, up $0.06)
CDNS February 48 calls (CDNS180216C00048000, $0.65, flat)
Entry Price: $0.70 (1/16/2018)
Exit Target: $1.40
Return: -7%
Stop Target: None
Action: Shares tested a 52-week high of $45.94 with lower resistance at $45.75-$46 holding. Support remains at $45.25-$45.
