Markets soared again on Wednesday, with the S&P adding 1.46%. Asia stocks rallied overnight with the Nikkei rocketing over 5% higher while Europe indexes are also higher this morning. U.S. futures are slightly in the green as I write this, the Dollar, Yields, and Oil are lower while Gold is up.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-5-6-26/
Stocks opened higher on Wednesday and never looked back, in a session that was eerily similar to Tuesday's. New highs typically beget new highs and markets closed at more all-time highs yesterday. Chips, AI names, non-ai names, energy and pretty much all stocks rallied. It was an impressive session filled with more insane moves on memory/storage side like SNDK and MU along with Chip names with old school AMD and INTC going absolutely berserk. It is enough for folks to continue to draw parallels to 2000 and the dot-com bubble and for the normal perma bears to continue to scream short like someone screaming fire a a movie theater. There will be a fire at some point, but for now it has been painful if you were short.
As stocks remain at all time highs, supply has been churned through. Limit orders have been cleared. There is less resistance. Will see how today and tomorrow play out but feels like someone sneezes and the SPY will break $740. For now just riding the river of momentum with no paddle, no reason to fight it.
Tomorrow could certainly cause some volatility with the April jobs report. Markets will be back to focusing on US fundamentals. Hopefully no crazy surprises on either side and we can go into the weekend on a high note.
And lastly, those Yields remain stubborn. I hate having to keep looking at them because I know at some point they will be used as a catalyst for downside:
And the 10 year:
GLW. Wow. I love it when a plan comes together. I added those GLW calls last week on a play for their investor event and the potential for some stock moving news. Sure enough they announced a partnership with NVDA with NVDA buying 15 million shares while GLW is looking to add 10x's its capacity and opening 3 more manufacturing facilities. We don't know all the details but to me just the partnership news is big enough to put the stock track for $250+ in the coming weeks. As outlined on the watchlist, I closed some of the calls out right at the open for 1,300%. Once it started to break into the $185s I took the last off for 400% and then started to watch for entries into next week. The $230s are the ones I was looking at. The stock is gapping this morning. Will likely wait the first 15 minutes for the dust to settle then enter something. What a monster GLW has been:
I was watching SMCI all day. Every time it rallied to $33 it found sellers. But at the same time it seemed well supported and the 1 min chart had a bull-flag. I figured once $33 broke it would be off to the races. So once $33 broke in the afternoon I added call into next week. Sure enough it exploded testing $34.77 before closing at $34.61. I used the move to close most of my calls out for nearly 100% and the over 100%. SMCI is fickle. It won't take much for it to go back into sell mode. At the same time this could be it, and $40 next week. Will likely hold for that outcome but use $33 or so as a stop. $35.30 big spot.
SERV reports after the close. I am cautiously optimistic and will just hold my spec calls knowing they will be bidless on any negative reaction. I say negative reaction because it almost doesn't matter what they report, it is how strong the shorts are(or if bulls show up). Think $12+ comes:
SE is back on watch. They report next week. Think it can have some premium build into next week. And also looks like it hasn't bounced back like other Asia names have the past few days like BIDU and BABA. Eyeing $110s with the premise to lock some/all in before earnings on the 12th:
SITM, one of my Top 5 stocks for 2026, is rocketing this morning after earnings. The option chain makes it almost impossible to trade with limited strikes and liquidity unfortunately. When the dust settles may revisit.
JOBY broke over $10 yesterday. Kicking myself for locking in the July calls but surprised they are not up more. I may look to reenter with higher strikes if it holds $10 in the morning:
And still eyeing RDDT for some lottos. And may look at TTD as well, they report earnings after the close so high risk. So does KODK, will just continue to hold my May strikes.
And here is what I am watching today: TTD, SMCI, RDDT, ALMU, JOBY, SE, ENPH, SEDG, HTFL, AXSM, COCO, 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