Market Line Weekly Newsletter January 15, 2017 The P-Time Advisory Service has positions in some of the equities we will review. If you would like to learn about the advisory service, please call Brad Farwell at 866-661-5664 or 310-6475664. If you have any questions about the newsletter, please send them to [email protected]

The biggest problem with buying options is time decay. We buy plenty of time so we don’t have to worry too much about that. However, just because we have time doesn’t mean we’re going to hold onto the option. It just means we can. Short term options need to be right about time and direction. Long-term options minimize the time factor.

Stock Watch: The trend is up. There will be pullbacks, but at this point we don’t expect them to change the long-term trend. Key support for the major U. S. indices (with primary emphasis on the mini futures) lies at last month’s low. Targets and support are noted on the charts.

There are no new trades. There is a trade exit in JBLU. There are trades in options that expire on Friday. Be sure to exit any options that are in the money at expiration.

DOW Futures Weekly

The upside breakout in the Mini Dow futures points to a further advance. The current targets are 20,000 and 22,500. The market appears to be overbought on a weekly basis. A weekly close below 17,418 would put the bullish outlook on hold.

DIA Weekly

The bullish breakout points to a further advance. The initial targets are 200 and 210. The market appears to be overbought on a weekly basis. A weekly close below 178.64 would put the bullish outlook on hold.

SPY Weekly

The trend is up. The current targets are 225 and 230. A weekly close below 205.38 would put the bullish outlook on hold.

QQQ Weekly

Recent trading confirmed a higher low bottom setup in the QQQ. The current targets are 125 and 130. A weekly close below 113.45 would void the bullish setup.

On 9/18 we suggested buying the QQQ January 19th 2018 120 call. The buy price was 8.92.

IWM Weekly

The trend is up. The current targets are 140 and 145. A weekly close below 114.18 would put the bullish outlook on hold.

On 9/25 we suggested buying the IWM June 16th 2017 124 call. The buy price was 7.38.

$TRAN Weekly

The trend is up. The current targets are 9500 and 10,000. A weekly close below 7712.13 would put the bullish outlook on hold.

XLI Weekly

The trend is up. The current targets are 65 and 70. A weekly close below 56.27 would put the bullish outlook on hold.

On 7/3 we suggested buying the XLI January 19th 2018 60 call. The buy price was 3.25.

XLB Weekly

The trend is up. The current targets are 52 and 57. A weekly close below 45.56 would put the bullish outlook on hold.

On July 17th we suggested buying the XLB January 19th 2018 50 call. The buy price was 3.70.

XLV Weekly

A bottom could be in place at the November low. The current targets are 75 and 80. A weekly close below 65.96 would put the bullish outlook on hold.

On 8/8 we bought the XLV Jan. ’18 80 call at 3.50. Always be prepared to risk the premium paid.

On 12/12 we bought the XLV Jan. ’18 73 call at 2.85. Always be prepared to risk the premium paid.

XLY Weekly

XLY has a higher low bottom setup. The current targets are 85 and 90. A weekly close below 81.15 would void the higher low bottom setup.

On 8/31 we bought the XLY Jan. ’18 85 call at 4.25. Always be prepared to risk the premium paid.

On 10/30 we suggested buying the XLY Jan. ’17 78 put. The buy price was 2.34.

XOP Weekly

A higher low bottom appears to be in place at the November low. The next target is 48. The bears have the momentum. A weekly close below 34.13 would void the higher low bottom setup.

On 10/25 we bought the XOP January 19th 2018 40 call at 4.20. Always be prepared to risk the premium paid.

OIH Weekly

A higher low bottom appears to be in place at the November low. The current target is 38. A weekly close below 26.10 would put the bullish outlook on hold.

On 10/2 we suggested buying buy the OIH January 19th 2018 30 call. The buy price was 3.45.

XLU Weekly

The trend has been down since the summer high. The bulls have had the momentum recently.

On 10/2 we suggested buying the XLU January 19th 2018 49 put. The buy price was 5.20. We want to take profits if XLU hits 44.00.

XLF Monthly

A symmetrical triangle appears to be complete on the monthly chart. A breakout of a symmetrical triangle can result in a significant advance. The long-term target is 30.

On 10/23 we suggested buying the XLF January 19th 2018 18 call. The buy price was 2.71. Always be prepared to risk the premium paid.

XRT Weekly

A bottom appears to be in place at the November low. The current targets are 50 and 55. The bears have had the momentum for the last five weeks. A weekly close below 40.85 would put the bullish outlook on hold.

On November 13th we suggested buying the XRT January 19th 2018 45 call. The buy price was 4.00. Always be prepared to risk the premium paid.

XHB Weekly

A bottom appears to be in place at the November low. The current targets are 38 and 42. A weekly close below 31.38 would put the bullish outlook on hold.

On November 13th we suggested buying the XHB January 19th 2018 34 call. The buy price was 3.10.

EWA Weekly

EWA has a weekly higher low bottom setup. The current targets are 24 and 27. A weekly close below 19.14 would void the higher low bottom setup. Key support lies at 16.08.

On 9/25 we suggested buying the EWA January 19th 2018 20 call. The buy price was 1.85.

EEM Weekly

EEM has a weekly higher low bottom setup. The current target is 44. A weekly close below 34.03 would void the higher low bottom setup.

On 7/10 we suggested buying the EEM June 16 th 2017 35 call. The buy price was 3.05.

On 9/11 we suggested buying the EEM January 20th 2017 36 put. The buy price was 2.20.

EWZ Weekly

The weekly trend has been up since last year’s low. A close over 38.50 could result in a further advance. The long-term target is 50. A weekly close below 31.04 would put the bullish outlook on hold.

On 11/11 we bought the EWZ January 19th 2018 35 call for 3.10. Always be prepared to risk the premium paid.

EFA Weekly

EFA has a higher low bottom on the weekly chart. The targets are 68 and 75. A weekly close below 56.10 would void the bullish setup.

On December 11th we suggested buying the EFA Jan. ’18 60 call. The buy price was 2.61.

CSX Weekly

The trend is up and the bulls have the momentum. The next targets are 40 and 45. A weekly close below 35.59 could result in a pause or a pullback.

On July 17th we suggested buying the CSX January 19th 2018 30 call. The buy price was 2.82.

JBLU Weekly

This week’s trading hints that JBLU could be ready for a pause or a pullback. We want to exit the long call. On 11/13 we suggested buying the JBLU January 19th 2018 20 call. The buy price was 2.80. We want to exit the call at the market. The current bid/ask is 4.00/4.60.

DNR Weekly

DNR has a weekly higher low bottom setup. The current targets are 9 and 12.50. A weekly close below 2.22 would put the bullish outlook on hold.

On December 11th we suggested buying 100 shares of DNR stock. The buy price was 4.22.

SLV Weekly

Recent trading hints that a bottom could be in place at the December low. The current targets are 19.50 and 25.

On 1/8 we suggested buying the SLV January 2019 15 call. The buy price was 3.00. Always be prepared to risk the premium paid.

FXI Weekly

Recent trading hints that a bottom could be in place at the December low. The current target is 52.

On 1/8 we suggested buying the FXI January 2018 36 call. The buy price was 3.20. Always be prepared to risk the premium paid.

XBI Weekly

XBI has a higher low bottom setup. XBI can make big moves. If the low holds, XBI could ultimately rally to 90. A weekly close below 58.66 would put the bullish outlook on hold.