MomentumOptions.com Pre-Market for 12/12/2017
Nasdaq Up 4-Straight
9:00am (EST)
U.S. markets traded mostly higher ahead of this week’s central bank decision from the Federal Reserve along with overseas outcomes also expected from the Bank of England and the European Central Bank. The Dow and S&P 500 failed at clearing all-time peaks but did set new closing highs after rising 0.3% and 0.2%, respectively.
The Nasdaq showed the most strength after gaining 0.5% to extend its winning streak to four-straight. Meanwhile, the Russell 2000 opened higher but struggled holding positive territory throughout the session before closing 2 points lower, or 0.1%.
Technology and Energy were sector standouts after advancing 0.9% and 0.8%, respectively. Financials and Industrials were down 0.3% and 0.2% with Consumer Staples the only other sector finishing lower after pulling back 0.02%.
The VelocityShares Daily Inverse VIX (ZIV) traded to a fresh 52-week and all-time high of 82.71 to clear lower resistance at 82.50-83. We have mentioned a push towards 84.50-85 could come on continued momentum and where a short-term market peak could occur. Rising support remains at 82-81.50 followed by 80-79.50 and the 50-day moving average.
The Spider Small-Cap 600 ETF (SLY) is trying to hold near-term support at $133.25-$133 and levels that have been solid since mid-November, for the most part. There is risk to $132-$131.75 and the 50-day moving average on a move below $133. Resistance is at $134-$134.25 with continued closes above the latter being a slightly bullish signal.
RSI is trying to hold late October support at 50 with risk to 45-40 on continued weakness and a move below this level.
The Consumer Staples Select Spiders (XLP) is trying to hold early December support at $56.25-$56 with a close below the latter signaling additional weakness. Resistance is at $56.75-$57 with the recent 52-week and all-time high at $57.36.
The 50-day moving average is back in an uptrend after falling below the 200-day moving average that formed a death cross in early November. This confirmed lower lows that followed and the eventual bottom near the $52.50 level. RSI recently peaked at 80 with near-term resistance now at 70. Continued closes above this level would be a slightly bullish signal. Support is at 65-60.
I have set the parameters for our two latest positions so let’s go check the tape.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 54-22 (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.
Spider Gold Shares (GLD, $118.01, down $0.47)
GLD January 117 puts (GLD180117P00117000, $1.00, up $0.10)
Entry Price: $0.95 (12/11/2017)
Exit Target: $1.90
Return: 5%
Stop Target: None
Action: Support is at $118-$117.75. Resistance is at $118.50.
Intel (INTC, $43.66, up $0.31)
INTC January 45 calls (INTC180119C00045000, $0.55, up $0.07)
Entry Price: $0.53 (12/11/2017)
Exit Target: $1.10
Return: 4%
Stop Target: None
Action: Resistance is at $43.75-$44. Support is at $43.50-$43.25.
Bank of America (BAC, $28.94, down $0.11)
BAC January 30 calls (BAC180119C00030000, $0.50, down $0.03)
Entry Price: $0.50 (12/8/2017)
Exit Target: $1.00
Return: 0%
Stop Target: None
Action: Support is at $28.75-$28.50. Resistance is at $29.25-$29.50.
Viavi Systems (VIAV, $8.87, up $0.05)
VIAV January 9 calls (VIAV180119C00009000, $0.35, flat)
Entry Price: $0.65 (11/29/2017)
Exit Target: $1.30
Return: -53%
Stop Target: None
Action: Resistance is at $9. Support is at $8.75-$8.50.
Twitter (TWTR, $22.05, up $0.95)
TWTR January 24 calls (TWTR180119C00024000, $0.40, up $0.15)
Entry Price: $0.70 (11/22/2017)
Exit Target: $1.40
Return: -42%
Stop Target: 15 cents (Stop Limit)
Action: Resistance is at $22.25-$22.50. Support is at $21.75-$21.50.
TiVo (TIVO, $16.15, up $0.15)
January 20 calls (TIVO180119C00020000, $0.15, flat)
Entry Price: $0.60 (10/31/2017)
Exit Target: $1.20
Return: -75%
Stop Target: None
Action: Support is at $16-$15.75. Resistance is at $16.25.