Markets closed higher on Monday, with the S&P adding .33%. Asia markets c closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar, Yields, and Oil are lower while Gold is higher.
And my rant from yesterday if you missed it: https://www.optionmillionaires.com/jbs-afternoon-rant-april-17th-2023/
Stocks opened higher to start the week, gave back the gains into the mid-day, before finding late day buyers to close higher. This morning earnings from BAC, JNJ, and GS are adding fuel to futures as all three posted solid results.
This continues the theme from Friday where JPM, C, and WFC all posted solid results and somewhat rosy commentary in-spite of what went on just weeks ago. After the close we get NFLX earnings which will set the tone for the tech sector. Q1 is typically not the best Q for NFLX in regards to sub adds, so any positive number should push the stock higher. Folks will also be watching to see how well their ad-supported memberships are going. A beat and any upside guidance I could see NFLX trading up near $400 this week. Inline numbers and maybe its $350 or so. A miss and downward guidance and the stock is back under $300. Will have a big impact on the Nasdaq after the close and likely on futures. As mentioned on yesterday watchlist, a churn here between $411-$415 will bode well for a move to $420 in the coming days:
VKTX soared into the mid-$20s yesterday before pulling back to close at $19.63. The stock is now up 6 sessions in a row. That upper bollie at $22.63 maybe the next stop and possible resistance. NASH data is due out sometime in Q2, so could be the catalyst that pushes the stock thru $30. I had MDGL on watch yesterday and sure enough they received breakthrough therapy designation for their NASH drug this morning. Premiums were nuts, even on the weeklies. The stock was trading at $250 and the $300 calls expiring Friday were nearly $1 so I passed. The news this morning bodes well for VKTX:
‘Madrigal Receives Breakthrough Therapy Designation from FDA for Resmetirom and Completes Enrollment of the Phase 3 MAESTRO-NASH Biopsy Trial’
EDIT resumed its rally, closing up over 7% after testing its 50dma. I used the move to close the last of my $7.50 calls for 500%. They expired Friday and didn't want to see some crazy downgrade come out and kill the rest of my profits... not to mention I am still holding May 10s. I may look for some further out strikes today if it retakes that 50dma at $8.52 as I think this run is only beginning:
I added some AXSM calls as well yesterday. AXSM is a great story and one of my top 5 stocks for 2023. Think this trades into the $80s in the coming weeks. There is a 23% short interest so it is volatile and is pressured at time by the shorts, but think this will only add more fuel for a bigger move the higher it goes:
I added some DXCM calls yesterday as outlined on yesterdays watchlist. It tested the $120s before pulling back to close at $118.65. A key session today. Would want to see a close above $120 or I may look to salvage the calls and revisit:
CDLX reversed morning lows to close up 4%. This is on a crash course with the double-digits in the coming weeks:
I am putting SAM and ALGN on watch today. Both report earnings next week:
If ALGN breaks $360, the $400s should come quick into next week:
SAM has been churning here in the $$315-$330 range for a month now. Sellers had a shot, now think the buyers come in and take it north of $340 into earnings:
And this is what I am watching today: ALGN, SAM, MDGL, CMG, IBM, EDIT, MASI, BLK, POOL, SITE, VKTX, SPOT, SMG, ROKU, FAZ, EXAS, CMG, ULTA, YOU, SRS, BLK, SQ, SAGE, ICPT, U, TRIP, RBLX, SPOT, AYX, and GLD.
Let's have a great day!
-JB