Markets were in rally mode on Thursday, with the S&P adding 1.33% while the Nasdaq closed up nearly 2%, as the PPI data came in cooler than expected just like the CPI own Wednesday. Asia markets closed higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a mixed open, the Dollar, Yields, and Oil are higher while Gold is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-238/
And here is my Rant from Yesterday if you missed it: https://www.optionmillionaires.com/jb-rant-april-13th-2023/
Markets gapped up at the open yesterday, chopped around for the first hour, then found buyers to melt higher for the rest of the day to close right near the highs of the session. Wednesday it was 'sell the good news on inflation'. Yesterday it was 'buy the good news on inflation'. Sure looks like that $415 handle on the SPY is going to come into play in the next session or two. This morning banks kicked off the earnings season with JPM, WFC, and C reporting. All three are ramping higher in the pre-matket with JPM leading the charge after they posted a massive beat and record high revenues. Should help alleviate concerns around a financial crisis that many of the bears have been fear mongering these past months. Next week earnings season start to pick up with names like TSLA and NFLX reporting along with more banks like GS and BAC. The next Fed Meeting is not until May 2nd-3rd so earnings could determine the market direction for the coming weeks:
EDIT was rallying after the open on news of some more additions to their leadership team. One of the main reasons this stock has languished has been failures from leadership. There have been 4-5 Chief Medical Officers since 2016... that alone should raise concerns. Recently they have worked to strengthen their leadership and this recent move bodes well for the future IMHO.
I added some inexpensive $7.50 calls and within 25 minutes was able to close some out for 250%. I also went and added some May calls. I think EDIT can look to retest $12 or so in the coming weeks(and possibly higher). May look for some other later strikes today as well:
It was another strong session for CDLX, closing up 14% and at multi-month highs. They opened May $10 calls today, so may look to add those if the stock can hold green in the morning. Think a move to $9 or so is coming, if that breaks, then low teens possible:
VKTX closed up for the 5th straight session. It is only a matter of time before it is in the $20s. I am eyeing more calls, likely June $25s or even July $30s. Take a look at the short interest which has more than doubled afte the last report... one of these days they will start to cover:
I added some NFLX calls yesterday as outlined on the watchlist. I will play it for premium build into next week with the plan to close some/all in before the close Tuesday. If NFLX finds a bid again today, could see $370 or so Mon/Tues on a break of that $350 handle:
BLK reported a beat this morning, but the revenues and earnings were down YoY. Could see a relief rally, especially if it clears the 50dma at $679. I may look at some spec calls to play for a move to $700 today:
MASI has been on fire lately, breaking into the $195s. Tough one to chase and the spreads make it difficult even if I wanted to. Still eyeing some calls. I may look at some June strikes to encompass earnings and for a move to $210+ in the coming weeks. Such a great story:
And this is what I am watching today: EDIT, MASI, BLK, POOL, SITE, VKTX, SPOT, SMG, ROKU, FAZ, EXAS, CMG, ULTA, YOU, SRS, BLK, SQ, MDGL, SAGE, ICPT, DKNG, U, TWLO, TRIP, RBLX, SPOT, AYX, and GLD.
Let's have a great day!
-JB