MomentumOptions.com Pre-Market Update for 9/21/2017
Tech Struggles Despite Bullish Close
8:00am (EST)
The market was choppy throughout the session following the Fed’s decision to leave interest rates unchanged. The Dow and S&P 500 set fresh all-time intraday and closing highs with the Russell 2000 also closing in positive territory. The Nasdaq showed some strength on the open but spent much of the session underwater afterwards with the Tech sector falling 0.4%. Consumer Staples were the weakest sector after falling 0.9%. Industrials, Energy and the Financials led the sectors in the green.
The Dow advanced 41 points, or 0.2%, to close at 22,412. The blue-chips cleared lower resistance at 22,400-22,500 while setting an all-time intraday high of 22,413. Rising support at 22,200-22,100 held on intraday dip to 22,314.
The S&P 500 added over a point, or 0.1%, to settle at 2,508. The index went out a half-point off its session high into the closing bell while setting a fresh lifetime high. Resistance remains at 2,515-2,525. Support at 2,480-2,475 held on the backtest to 2,496.
The Nasdaq fell 5 points, or 0.1%, to finish at 6,456. Tech trade up to 6,466 shortly after the open with lower resistance at 6,475-6,525 holding. The rest of the session was spent underwater with the low tapping 6,414. Support at 6,425-6,400 was split with a move below the latter signaling a possible near-term top.
The Russell 2000 climbed 5 points, or 0.4%, to end at 1,445. The small-caps showed strength for much of Wednesday after slipping a half-point to 1,440 on the open. Support at 1,430-1,425 held before a midday run to 1,446. Lower resistance at 1,445-1,450 was cleared with the all-time high of 1,452 just a half-percent point away from triggering.
The S&P 500 Volatility Index ($VIX, 9.78, down 0.40) traded below 10 for much of the session before a spike to 10.67 on the Fed news. Lower resistance at 11-11.50 easily held before the fade to 9.67 into the close. The close below upper support at 10-9.50 was a bullish signal with the 52-week and July low of 8.84 back in the mix.
After closing 2 more profitable positions yesterday, the portfolio has plenty of room for New Trades. Stay locked-and-loaded this morning in case I take action ahead of the Mid-Market update.
Momentum Options Play List
Closed Momentum Options Trades for 2017: 48-19 (72%). 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, $32.60, up $0.11)
CSCO October 32 calls (CSCO171020C00032000, $0.75, flat)
Entry Price: $0.50 (9/13/2017)
Exit Target: $1.00
Return: 50%
Stop Target: 58 cents (Stop Limit)
Action: Shares tested a high of $32.75 yesterday. Resistance is at $32.75-$33. Support is at $32.25-$32.
TherapeuticsMD (TXMD, $6.31, down $0.01)
TXMD December 7.50 calls (TXMD171215C00007500, $0.70, flat)
Entry Price: $0.95 (8/17/2017)
Exit Target: $1.90
Return: -26%
Stop Target: None
Action: Support is at $6.25 and was Wednesday’s low. Resistance is at $6.50-$6.75.
TiVo (TIVO, $18.95, down $0.10)
TIVO October 20 calls (TIVO171020C00020000, $0.45, down $0.05)
Entry Price: $0.70 (8/8/2017)
Exit Target: $1.40
Return: -36%
Stop Target: None
Action: Upper support at $19-$18.75 failed to hold with yesterday’s low tapping $18.90. Lowered resistance is at $19.25.