Markets rallied last week, with the S&P adding 4.54% and higher for the 3rd week in a row. Asia stocks finished in the green overnight while Europe indexes are solidly in the red this morning. U.S. futures are pointing to a lower open, the Dollar, Yields, and Oil are higher while Gold is lower.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-update-4-17-26/
Indexes ended the week at all-time highs and I thought, maybe this will finally be the weekend with no headlines... scratch that. Iran announced the Strait of Hormuz was open on Friday and then 24 hours later said it was closed again and started firing at ships. So much for a quiet weekend.
The difference between this weekend and the ones before is the market reaction, which was less negative. Not sure if the Market is dismissing the news or just growing tired of it. But sure feels like the same reaction the market gave to the tariff shenanigans when the market reacted less to the headlines as the fiasco went on. Either way, almost feels to me like there will be some deal complete by Wednesday... whether an extension of the cease-fire or a full blown deal, and then markets can move onto the next market headwind... or just back to the AI Bubble.
There is not much in the way of market catalysts this week. Kevin Marsh is set for his confirmation hearing tomorrow which should be good for some comedic relief but shouldn't be market moving. We do have earnings with TSLA, LRCX, NOW, INTC, and others reporting. The implied moves:
Outside of that should be more headline driven as markets consolidate the monster rally. I mentioned it on Thursday, new highs beget news highs as the sellers have been cleared out, so pending any crazy surprises, would think $720 or so is possible on the SPY in the coming weeks. The upper-bollinger at $711.10 could be some resistance if we bounce today with $704 being possible support:
ISRG reports earnings tomorrow after the close. The stock is down 17% YTD despite strong earnings and has been chopping around in a tight range since mid-February. Think earnings could be the catalyst to get it back in track. I was eyeing May $580 or even 590 calls on Friday. Will be watching again today. Won't need a huge move for those to pay and ISRG has a 6.9% implied move:
I finally added DUOL calls on Friday with the stock looking like it was finally going to hold its morning gains. Boy was I wrong. The stock tested $107 in the morning and then reversed course $7 to close down 2% at $100.51. One of these morning runs is the start of a bigger move. And when it goes, inexpensive calls will become expensive multi-baggers.
I am back in TZOO. They will report April 28th. Think the market got it completely wrong last Q. Not to mention CEO insider buy and the companies 1 million share buyback. Think $10+ is coming:
I also added May strikes on CRBP. LLY acquired a private oncology name over the weekend which could have a positive impact on CRBP which has early stage study. Or maybe just my wishful thinking:
Either way, think CRBP can run even during market consolidation above $15:
Came so close to grabbing FUBO calls on Friday. $13.65 is the 50dma, sure looks like it could squeeze on that break. Will be watching:
And ROKU as well for a move north of $120:
I was eyeing NFLX for a bounce Friday but there was none to be had. Not only that, the stock traded in a right range despite just reporting earnings. A good sign here today if it can hold $96 or so and maybe the bottom is in so will be watching again today:
And here is what I am watching today: ISRG, DUOL, NFLX, FUBO, ROKU, SEDG, HIMS, BIDU, RBLX, SMCI, RDDT, KODK. NKLR, GLW, AAOI, LMND, SHOP, ANET, AVGO, INTU, ADBE, APP, WING, LRCX , ASML,ORCL, U, TTD, TSLA, ALMU, VKTX, RH, ROKU, KODK, ALGN, ISRG, LMND, CF, NTR, IPI, SERV, SHOP, ANET, HTFL, ROKU, POOL. V, MA, ZM, WING, SHOP, SQQQ, MRNA, DUST, FLWS, COCO, COIN, and SQQQ.
Let's have a great day!
-JB