MomentumOptions.com Pre-Market for 1/26/2018
Small-Caps Reclaim 1,600 Level
8:00am (EST)
The market was choppy throughout Thursday’s session after trading on both sides of the ledger before finishing mostly higher.
The Dow rose 0.2% after trading to an all-time intraday high of 26,458 while settling just below the 26,400 level and record close. The S&P 500 added 0.1% but fell shy of its record high of 2,852 by 4 points while finishing just below 2,840.
The Nasdaq slipped 0.1% after testing a high of 7,458 on the open before tumbling below 7,400 and a level that held into the closing bell. The Russell 2000 climbed 0.1% to reclaim the 1,600 level.
Utilities soared 1.5% to lead sector strength with Health Care and Materials rising 0.8% and 0.7%, respectively. Energy paced the laggards after falling 0.9% while Real Estate and Financials slid 0.3%.
The Financial Select Sector Spiders (XLF) traded to a fresh 52-week high of $30.13 before finishing slightly lower for the session. We mentioned earlier this month there was breakout potential to $29.50-$30 on continued closes above $28.25. Continued closes above $30 could lead to a run towards $31-$31.50 over the near-term. Near-term support is at $29.75-$29.50.
RSI cleared December resistance at 80 with support at 75-70 on a close below this level.
I have updated our current trades so let’s go check the tape.
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, $14.71, up $0.04)
CNX February 15 calls (CNX180216C00015000, $0.50, flat)
Entry Price: $0.50 (1/23/2018)
Exit Target: $1.00
Return: 0%
Stop Target: None
Action: Near-term resistance at $14.75-$15 held on yesterday’s run to $14.80. Support is at $14.50-$14.25.
Cypress Semiconductor (CY, $16.97, down $0.16)
CY February 18 calls (CY180216C00018000, $0.30, down $0.10)
Entry Price: $0.60 (1/23/2018)
Exit Target: $1.20
Return: -50%
Stop Target: None
Action: Support at $16.75 held with yesterday’s low tapping $16.94. Resistance is at $17.25.
Blackberry (BB, $13.05, down $0.20)
BB March 15 calls (BB180316C00015000, $0.25, down $0.05)
Entry Price: $0.47 (1/16/2018)
Exit Target: $1.00
Return: -46%
Stop Target: None
Action: Support at $13 held following Thursday’s backtest to $13.01. Resistance is at $13.25.
Apache (APA, $47.45, down $0.67)
APA February 50 calls (APA180216C00050000, $0.95, down $0.20)
Entry Price: $1.07 (1/16/2018)
Exit Target: $2.10
Return: -11%
Stop Target: None
Action: Fresh support is at $47.25-$47 following yesterday’s low of $47.42. Resistance is at $48.25-$48.50.
Cadence Design Systems (CDNS, $44.86, down $0.52)
CDNS February 48 calls (CDNS180216C00048000, $0.50, down $0.10)
Entry Price: $0.70 (1/16/2018)
Exit Target: $1.40
Return: -29%
Stop Target: None
Action: Support is at $44.75-$44.50 with yesterday’s low reaching $44.77. Resistance is at $45.