Markets closed mixed on Monday, with the S&P and Dow finishing slightly higher while the Nasdaq closed in the red. Asia markets finished up overnight while Europe indexes are higher this morning. U.S. futures are pointing to a flat open, the Dollar, Yields, and Oil are lower while Gold is higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-235/
It was a bumpy start to the trading week with stocks tumbling at the open, hitting lows at the noon hour, only to battle back and close at session highs at the close. It looks like another rocky ride is in store today with stock futures giving back the overnight gains already. Tomorrow morning we get the much anticipated Mach CPI data along with the Fed minutes at 2pm. Wednesday will certainly be a volatile session. A cooler CPI number coupled with Fed minuets that paint a more dovish tone on the heels of the Silicon Bank fiasco, and think the SPY can work on testing $415. Hotter CPI number and hawkish Fed and that $400 handle may come back in play. A mix of both and we chop around here in the $405-$410 range. Of course I am leaning towards the first option, but certainly open to any scenario here. That $405 handle held up again yesterday so looks like key support with $411 or so resistance:
INMD rallied in the morning and received a mid-day shout-out on CNBC Halftime report, which helped lift it above $34. It tested $34.81 before pulling back to close at $34.51. I used the move to close some of my calls out for 100% to cover costs. The stock finally broke that 50dma. Think a move to $37 or so is possible in the coming days so will hold the rest of my calls for that possible move while using the $33 handle as a possible stop:
SMG was rallying yesterday after they announced they are running ahead of schedule on their debt/leverage. A great sign and likely bodes well for a beat and raise when they report earnings the first week of May. I added some OTM April strikes and may look to add some calls into next month today to play for a move into the $80s in the coming weeks:
I also added some ROKU calls. There is a possible golden cross setting up. The stock was testing the $64s in the morning, gave back all the gains in 30 minutes, only to rally back into the close to finish at highs. NFLX reports earnings a week from today so I may actually look to add some more calls on ROKU into next week to play for a possible sympathy move(and premium build). If the Golden-cross plays out ROKU is $75+ in short order:
A solid session for VKTX yesterday, closing right near $17. Looks to be setting up for a next leg, hopefully to $20. I will look to close the last of my April strikes out soon and just hold my Mays:
YEXT put an end to its 4 session losing streak on Monday, finding support at the 50dma. Will need a big move here soon but still hopeful for the eventual break over $10:
Still like the CI setup here ahead of UNH earnings Friday and will continue to hold the rest of my freebies calls:
SPOT was initiated with an outperform rating this morning and $160 PT at Baird. Could be the kick it needs to breakout of its recent trading range and into the $140s. I may look to add some speculative calls today:
And lastly, if that $405 handle on the SPY fails to hold on weakness, will be looking at some FAZ calls as a possible hedge.
And here is what I am watching today: SPOT, SMG, POOL, SITE, CI, BLK, ROKU, FAZ, MASI, EXAS, CMG, ULTA, NFLX, YOU, SRS, BLK, SQ, MDGL, SAGE, ICPT, DKNG, U, TWLO, TRIP, RBLX, SPOT, AYX, and GLD.
Let's have a great day!
-JB