Markets fell on Tuesday, with the S&P losing .63%. Asia stocks closed mixed overnight while Europe indexes are flat this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And here is the last rant if you missed: https://www.optionmillionaires.com/morning-rant-4-21-2026/
Markets opened in the red on Tuesday, and could never find its footing. New Fed Chair Kevin Warsh's confirmation hearing in he morning offered up the usual political posturing but think there was little market impact, although stocks did pull to lows. The rest of the day was wondering if the US/Iran peace talks were gong to happen. Was Vance on a plane yet? Where is the plane? Where is Vance? Is Iran coming? Who from Iran? Then finally at 3:30 reports came out that Vance was not going and there would be no talks. The SPY, which almost looked ready to stage a last hour bounce, tumbled, testing $702 before closing at $704. Then after the close Trump announced he was extending the cease fire. Futures then went on to recoup the losses...
Exhausting. It is hard enough to trade without random tweets/headlines moving stocks. Hopefully this environment changes soon. I am still hopeful a positive resolution is coming soon. With that being said, yesterday is another great example of how important it is to keep things tight. Still think $720 possible in the coming days but of course any headline can change that:
With DELL finally coming to life figured SMCI would play 'ketchup'... and then HPQ was running in the morning and thought, heck it will be playing 'ketchup' as well. So needless to say added calls in both yesterday. SMCI actually filled its mid-March gap before pulling back. Once that clears should be off to the races to $35+:
And HPQ to at least $23, where the calls will be up 150%+:
And lastly, finally back in FUBO calls with the stock breaking its 50dma for the first time in months. Sure enough it pulled with the rest of the market, giving back all its gains. Still like it for a breakout in the coming days/weeks:
TZOO reports tomorrow. Would have liked to be able to take some calls off to cover costs and ride free but looks like I will be going in with a full position. Obviously some risk so expect the possibility of the stock floundering and the calls being bid-less. I intend to hold into earnings:
ISRG had great earnings after the bell yesterday and the stock is higher but only 2%. Could be a gap and go type of day for it. May look to nibble some OTM calls like $500s or $510s if I can find a decent price:
And lastly, yesterday afternoon was a great example of how tough the market can be. The SPY went in free fall after the Vance news. The first reaction is panic... sell calls buy puts. Or even just buy puts. I still have the mindset that I'd rather be nibble calls for bounces. So thankfully I didn't close everything out and get puts yesterday on what was an obvious bearish headline.
I think the market is pricing in a positive outcome to all this so until that changes that will be my plan.
And here is what I am watching today: ISRG, ALMU, FUBO, FLWS, DUOL, NFLX, 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