Markets rallied on Tuesday, with the S&P adding .96% and closing at more all-time highs. Asia stocks closed higher overnight while Europe indexes are soaring this morning with the DAX up over 2% as I write this. U.S. futures are pointing to a higher open, The Dollar, Yields, and Oil are lower while Gold is higher.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-5-5-26/
Markets opened in the green yesterday and never looked back, with the S&P rallying nearly 1%. Nothing really changed between Monday and Tuesday besides there being more buyers than sellers. You still had headlines coming out from the Middle East. Storage names contained their ascent.. ie. $SNDK, $MU, $WDC and so did some of the chip space including AMD and INTC. Some of the moves recently have been insane. But they have been insane in a while. So many out there have been fighting this. Michael Burry of big short fame pens these great pieces on how things are overvalued. They all sound great, but we are here to make money not to read great fiction stories. Needles to say he has been buying puts on SOXX, which at some point will pay. But right now it is not gong well. After the close yesterday AMD posted a monster Q and the stock is soaring over 15%. A remarkable feat considering the 100% move it has had in the past month. The chip/memory/optic space continues to be on fire.
This morning there are more reports out that a peace deal in the Middle East is close and the Strait of Hormuz is open. Seems like the market has already priced this in but Oil is down 8%. Just another reason markets are higher. New highs beget news highs, At some point there will be some consolidation but for now, enjoy the ride:
And of course watching that 10yr:
GLW! Corning! NVDA! They pulled the rabbit out of the hat this morning ahead of their investor event GLW announced long-term partnership with NVDA to expand capacity 10x's and build 3 new plants. Specifics are not mentioned but right now it shows a warrant for $NVDA to buy 15 million of GLW shares. I actually think that is a good thing. No numbers = speculation - no sell the news. The stock is up nearly $30 in the pre-market. $200 is the tough nut to crack, If that falls, think $220 this week... call me crazy. At the same time maybe they churn the gap so will certainly take some of my calls out right at the open to cover costs with profits and ride the rest. Kicking myself for not having more or lower strikes but if I had loaded the boat, news would wait until they expired... that's how it works(joking aside). Depending on premiums, I may start looking for further out strikes for mid-$200s by the summer:
OWL continues its ramp, breaking over that $10.53 level from Monday. The calls finally up-ticked. Like I typically do, will look to take some off at 100% to cover costs and ride the rest, Think $12+ comes soon and then possibly much higher:
I added IIPR calls. The stock as rallying after its earnings. Sure looks like a potential gap fill is coming to $77. Will see how the market trades this morning. If it shows follow-thru may look to add some June calls:
SEDG reported earnings this morning. For some reason I thought it was after the close. They reported decent numbers but guidance was flat, not the type you want to see on a highly shorted name. At some point it marks the start of a major turnaround so will be watching close after the open(along with GLW). If it goes red to green I may look for some lottos. May also look at ENPH which rallied 10% yesterday. ENPH could be setting up for a move north of $40:
and SEDG:
I tried RDDT for some calls yesterday but once it struggled to break $175, I closed them flat. Still watching today. SERV reports tomorrow. Will just hold my spec calls. Inexpensive risk.
Also for some reason WW has caught my eye. $100 mil market cap, $700 ml min revenues and just started selling the Ozempic pill. One of these days it may start a squeeze.
And here is what I am watching today: GLW, WW, FUBO, ENPH, SEDG, TTD, HTFL, AXSM, COCO, RDDT, SEDG, FUBO, ALMU, ATOM, RBLX, ROKU, ALGN, META, AMZN, CRBP, HIMS, NFLX, BIDU, SMCI. NKLR, GLW, AAOI, LMND, SHOP, ANET, AVGO, INTU, ADBE, APP, WING, LRCX , ASML,ORCL, U, TTD, and TSLA.
Let's have a great day!
-JB