Futures are pointing to a mixed open this morning, after closing up .79% last week. The S&P has now finished higher in 4 of the past 5 weeks. Asia markets closed up overnight while Europe indexes are in the green this morning. The US dollar, Yields, and Gold are higher while Oil is lower.
And here is my Rant from Friday if you missed it: https://www.optionmillionaires.com/jb-am-rant-april-14th-2023/
Markets are looking to add to last weeks gains, as earnings season kicks into high gear. Names like NFLX, TSLA, JNJ, IBM, GS, BAC, and others set too report. Here are the implied moves: https://www.optionmillionaires.com/implied-moves-for-earnings-next-week-apr-17th-apr-21st-163-companies-reporting/
Housing data is out this week which could help buoy markets if the numbers are flat or show signs of a small rebound. Outside of that, there is weekly jobless claims, which seems to have gained more importance as folks look to see if the Fed has had some impact in creating unemployment(so sad to type that). The SPY came up to that $415 handle on Friday and found resistance to close at $412.46. Some churn here between $411-$415 would bode well for the eventual test of that $420 handle:
BLK rallied out of the gate on Friday and I went and added some lotto calls. I was able to close some out for 200% and 800%. The stock failed to hold that $700 handle. If it breaks into the $698s or so today, I may look to add some more speculative calls to play for a move to $720+ in the coming days. The stock had been needlessly brought down with the rest of the financial sector so should recoup some of the losses after their earnings came in better than feared:
I also nibbled some GLD puts on Friday as Gold was selling off on a stronger USD. I was able to close some of the puts out for 100% and 200%. Seems Friday is the pullback day for Gold so will be watching again this week.
Some huge news this weekend in the Biotech sector with MRK buying RXDX for $10.8 bil... a 75% premium :
The big cap bio's are flush with cash and would think this is the start of 'buyout dominoes', as other names start getting gobbled up. Of course I love VKTX, and think it is in some companies crosshairs. Have to think MDGL is another. This week, I will be searching for some other small-cap bio names that could see some buyout interest. I added more VKTX calls on Friday. The short interest doubled on the last report and it is still trading under a $2bil valuation. All mind-boggling to me as LLY's weight loss drug is likely to hit the market this year. The TAM is insane and VKTX's drug looks to be as good or even better than LLY's and they are also working on a possible oral solution. Not to mention NASH data is due soon. Think it is only a matter of time before this trades north of $20 and beyond:
MDGL has stalled since announcing its positive PH3 NASH data. I may look to add some speculative calls to play for a move back near $300 in the coming months and possible buyout interest:
Still love EDIT here as well. Will continue to hold my calls:
CDLX fell on Friday after the weaker than expected Retail Sales data. I used the dip to add more calls. Think CDLX is on a crash course with the double-digits in the coming weeks:
DXCM was upgraded this morning at Raymond James from Strong Buy to Outperform with a $138 PT from $127. Could be the kick it needs to finally break and hold the $120s. May look at some calls today:
CMG also received an upgrade this morning. It reports earnings a week from tomorrow. Think a run up into earnings is possible:
Lastly, NFLX will report earnings after the close tomorrow. Still holding calls. I will likely hold the calls at least into tomorrow, unless the stock breaks $335. They were supposed to livestream a popular show last night but it was an e[ic failure. Would hope the stock is not pressured today because of that:
And this is what I am watching today: MDGL, DXCM, CMG, IBM, EDIT, MASI, BLK, POOL, SITE, VKTX, SPOT, SMG, ROKU, FAZ, EXAS, CMG, ULTA, YOU, SRS, BLK, SQ, SAGE, ICPT, DKNG, U, TWLO, TRIP, RBLX, SPOT, AYX, and GLD.
Let's have a great day!
-JB