MomentumOptions.com Pre-Market Update for 9/19/2017
Small-Caps Still Leading After Lagging
8:00am (EST)
The market started the week strong with record highs once again in play for the Dow, S&P 500 and the Nasdaq. The Russell 2000 came within 8 points of triggering a fresh all-time high and is less than 1% away from doing after leading the way higher. The Financial sector showed the most strength after gaining 1.2% with Industrials and Materials rising 0.6%. Utilities and Real Estate led the laggards with losses of 1% and 0.6%, respectively.
The Dow advanced 64 points, or 0.3%, to settle at 22,268. The blue-chips traded higher throughout the session while setting an all-time intraday high of 22,355. Lower resistance at 22,400-22,500. Support remains at 22,100-22,000.
The S&P 500 climbed 3 points, or 0.2%, to finish at 2,503. The index kissed a morning lifetime high of 2,508 on the open while holding lower resistance at 2,500-2,525 into the closing bell. The quarter-point slip into negative territory easily held support at 2,480-2,475.
The Nasdaq added 6 points, or 0.1%, to end at 6,454. Tech reached a record peak of 6,477 shortly after the open to clear lower resistance at 6,475-6,525. The 10-point pullback to 6,438 held upper support at 6,425-6,400.
The Russell 2000 jumped 9 points, or 0.7%, to close at 1,441. The small-caps held green throughout Monday’s action while testing a high of 1,444. Lower resistance at 1,445-1,450 and the all-time high of 1,452 held with room to run to 1,475, if cleared. Rising support is at 1,430-1,425.
The S&P 500 Volatility Index ($VIX, 10.15, down 0.02) tested a low of 9.88 to push fresh support at 10-9.50. Resistance remains at 11-11.50.
I have adjusted the Stop Limits on CSCO and CY to further protect profits.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 46-19 (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.
Cisco Systems (CSCO, $32.52, up $0.08)
CSCO October 32 calls (CSCO171020C00032000, $0.75, up $0.05)
Entry Price: $0.50 (9/13/2017)
Exit Target: $1.00
Return: 50%
Stop Target: 52 cents, raise to 58 cents (Stop Limit)
Action: Raise the Stop Limit from 52 cents to 58 cents.
Resistance at $32.50-$32.75 was split on Monday’s push to $32.66. Support is at $32.25-$32.
Cypress Semiconductor (CY, $14.54, up $0.13)
CY October 14 calls (CY171020C00014000, $0.90, up $0.10)
Entry Price: $0.60 (9/1/2017)
Exit Target: $1.20
Return: 50%
Stop Target: 63 cents, raise to 75 cents (Stop Limit)
Action: Raise the Stop Limit from 63 cents to 75 cents.
Lowered resistance at $14.50-$14.75 held on the run to $14.79 yesterday. Support remains at $14.25-$14.
TherapeuticsMD (TXMD, $6.65, up $0.05)
TXMD December 7.50 calls (TXMD171215C00007500, $0.80, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -18%
Stop Target: None
Action: Resistance is at $6.75. Support is at $6.25.
Intel (INTC, $37.03, up $0.03)
INTC October 37 calls (INTC171020C00037000, $0.70, flat)
Entry Price: $0.53 (8/15/2017)
Exit Target: $1.10
Return: 32%
Stop Target: 55 cents (Stop Limit)
Action: Monday’s high reached $37.33 with shares up 1% in after-hours trading. Resistance is at $37.25-$37.50. Support is at $36.50-$36.25.
TiVo (TIVO, $19.65, up $0.50)
TIVO October 20 calls (TIVO171020C00020000, $0.70, up $0.15)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: 0%
Stop Target: None
Action: Lower resistance at $19.50-$19.75 was cleared with Monday’s peak reaching $19.67. Support is at $19.25-$19.