MomentumOptions.com Pre-Market for 12/7/2017
Dow Down 5-Straight/ Trade Alert (CC)
8:00am (EST)
The market continued its recent pattern of showing strength on the open and weakness afterwards to close Wednesday’s session mixed. The Nasdaq gained 0.2% to snap a three-session slide while the S&P 500 slipped a third-point, or 0.01%. The Dow declined 0.2% while closing in the red for the fifth-straight session. The Russell 2000 extended its losing streak to four-straight after sinking another 1.5% while holding the 1,500 level.
Technology and Consumer Staples showed sector strength after rising 0.6% while Utilities gained 0.4%. Energy lead the laggards with the sector falling 1.3%. Consumer Discretionary and Materials declined 0.6% and 0.5%, respectively.
The PowerShares QQQ (QQQ) made a run to $153.74 with resistance at $153.75-$154 holding. A move above $154.50would be a slightly bullish development and would signal a possible short-term bottom. Early and mid-November support at $152 has been holding with a move below this level likely leading to $151.50-$151 and a retest of the 50-day moving average. RSI is trying to hold late October support at 50 with risk to 40 on continued closes below this level.
I have raised the Exit Target and the Stop Limit on the remaining 2/3rd’s of our current bearish trade in CC.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 53-22 (71%). 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.
Chemours (CC, $46.35, down $2.95)
January 47 puts (CC180119P00047000, $3.10, up $1.30)
Entry Price: $1.30 (12/4/2017)
Exit Target: $2.60, raise to $4 (closed 1/3 at $3.10 on 12/6/2017)
Return: 138%
Stop Target: $1.35, raise to $2.80 (Stop Limit)
Action: Raise the Exit Target from $2.60 to $4. Raise the Stop Limit from $1.35 to $2.80 on the remaining 2/3rd’s of the position.
Fresh support is at $46-$45 with yesterday’s low tapping $45.05. Resistance is at $46.50-$46.75.
Viavi Systems (VIAV, $8.73, down $0.16)
VIAV January 9 calls (VIAV180119C00009000, $0.35, down $0.05)
Entry Price: $0.65 (11/29/2017)
Exit Target: $1.30
Return: -53%
Stop Target: None
Action: Upper support at $8.75-$8.50 was stretched with shares closing in the session low. Lowered resistance is at $9.
Twitter (TWTR, $21.09, up $0.32)
TWTR January 24 calls (TWTR180119C00024000, $0.25, flat)
Entry Price: $0.70 (11/22/2017)
Exit Target: $1.40
Return: -64%
Stop Target: 15 cents (Stop Limit)
Action: Lowered resistance at $21-$21.25 was cleared following the run to $21.40. Fresh support is at $20.75-$20.50.
TiVo (TIVO, $16.20, up $0.15)
January 20 calls (TIVO180119C00020000, $0.15, down $0.05)
Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -75%
Stop Target: None
Action: Resistance is at $16.25-$16.50. Support is at $16-$15.75.