MomentumOptions.com Pre-Market for 12/15/2017
Russell 2000 Leads Pullback
8:00am (EST)
The market showed continued strength during the first half of Thursday’s action but weakened midday to finish slightly lower. The Dow traded to another all-time high for the second-straight session before sliding 0.3% to snap a five-session win streak. The S&P 500 dipped 0.4% to finish lower for the first time in six sessions after failing fresh resistance.
The Nasdaq topped the 6,900 level for the first time this month but failed its lifetime high by 13 points before declining 0.3%. Meanwhile, the Russell 2000 continues to show the most recent volatility after sinking 1.1% while holding 1,500 and a level that has held as support since mid-November.
Consumer Staples and Real Estate were the only sectors that that closed in the green after gaining 0.3% and 0.1%, respectively. Materials and Health Care led sector laggards after stumbling 1.1% and 1%, respectively.
The iShares 20+ Year Treasury Bond ETF (TLT) traded higher for the second-straight session while reaching a peak of $127.98 intraday. Resistance at $127.50-$127.75 was cleared with closes above $128 being a continued bullish development. The 52-week high is at $129.57 that was reached in early September. Rising support is at $127.25-$127.
The VelocityShares Daily Inverse VIX (ZIV) tapped another record high of 83.86 intraday to extended its winning streak to six-straight sessions. Resistance remains at 84.50-85 and where a short-term top could come into play. Support remains at 82.50-82 with a move below 81 being a slightly bearish signal.
The PowerShares QQQ (QQQ) made a run to $156.66 with near-term resistance at $156.75-$157.50 holding. The recent all-time high is at $156.69 from late November with a close above the former being a continued bullish development. Support is at $155-$154.50 with a move below $154 like.y leading to a further backtest towards early and mid-November support at $152 and the 50-day moving average.
RSI has leveled off above 60 with continued closes above this level keeping resistance at 70 in play. Support is at 50 on a close back below 60 and would signal upcoming weakness.
The Health Care Select Sector Spider (XLV) made a push towards resistance at $84-$84.25 and its recent 52-week and all-time high of $84.31 after peaking at $84.16. A short-term double-top could be in the process of forming following the 1% intraday reversal. Support is at $82.50-$82.25 and the 50-day moving average on a close back below $83.
RSI failed resistance near the 70 level and is back in a downtrend. Near-term support is at 50 on continued weakness.
I have updated our current trades so let’s go check the action.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 54-23 (70%). 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.
Pfizer (PFE, $36.46, down $0.18)
PFE January 37 calls (PFE180119C00037000, $0.36, down $0.08)
Entry Price: $0.43 (12/14/2017)
Exit Target: $0.90
Return: -18%
Stop Target: None
Action: The options opened at 43 cents and traded up to before pulling back. Shares traded to a fresh 52-week peak of $36.89 with multi-year resistance at $36.75-$37 holding. Support is at $36.25-$36.
Spider Gold Shares (GLD, $118.93, down $0.24)
GLD January 117 puts (GLD180117P00117000, $0.60, down $0.02)
Entry Price: $0.95 (12/11/2017)
Exit Target: $1.90
Return: -34%
Stop Target: None
Action: Upper support at $119-$118.75 failed to hold on yesterday’s low of $118.71. Resistance remains at $119.25-$119.50.
Intel (INTC, $43.26, down $0.08)
INTC January 45 calls (INTC180119C00045000, $0.43, down $0.03)
Entry Price: $0.53 (12/11/2017)
Exit Target: $1.10
Return: -17%
Stop Target: None
Action: Support is at $43.25-$43. Resistance is at $43.50-$43.75.
Bank of America (BAC, $28.73, down $0.11)
BAC January 30 calls (BAC180119C00030000, $0.35, down $0.05)
Entry Price: $0.50 (12/8/2017)
Exit Target: $1.00
Return: -30%
Stop Target: None
Action: Support is at $28.75-$28.50. Resistance is at $29.
Viavi Systems (VIAV, $8.65, down $0.20)
VIAV January 9 calls (VIAV180119C00009000, $0.25, down $0.10)
Entry Price: $0.65 (11/29/2017)
Exit Target: $1.30
Return: -42%
Stop Target: None
Action: Support is at $8.50. Resistance is at $8.75-$9.
Twitter (TWTR, $22.58, up $0.92)
TWTR January 24 calls (TWTR180119C00024000, $0.60, up $0.25)
Entry Price: $0.70 (11/22/2017)
Exit Target: $1.40, lower to $1 (Limit Order on half)
Return: -14%
Stop Target: 15 cents, raise to 35 cents (Stop Limit)
Action: Set a Limit Order to close half the trade at $1. Raise the Stop Limit from 15 cents to 35 cents to further limit losses.
Fresh resistance is at $22.75-$23 with yesterday’s run reaching a 52-week high of $23.24. The options kissed 91 cents. Rising support is at $22.25-$22.