Futires are pointing to a slightly higher open as I write this, on the heels of a week that saw the S&P closing down 06%. Asia markets closed mostly lower overnight while Europe indexes are mixed this morning. The US dollar and Gold are higher while Yields are lower.
It is going to be a big week for markets, with the largest companies on the planet set to report earnings, more housing data, the first read on 1st Q GDP Thursday, and PCE numbers on Friday. Leave it to Marketwatch to put the fear mongering headlines up:
Earning season has been better than feared although many companies are reporting YoY declines. This week we get AAPL, AMZN, GOOGL, META, MSFT, and others. Inline or beats, and the market could find some buyers. Any big misses, and the SPY likely breaks under that key $410 handle. Here are the implied moves this week:
PCE data on Friday will also be key. More cooler than expected numbers and markets could find some support. Still think that $420 handle is coming soon, this week will go a long way in determining if that happens. On the other hand, if the SPY can't hold $410, may look to add some hedge positions in FAZ, SKF, and/or SRS:
I was able to close the last of my $35 calls on INMD for nearly 400% on Friday. They report earnings on May 2nd, though they already pre-announced. It has churned nicely in the $37 range. Think a move over $40 is coming soon. May look to enter some calls to play for that move along with premium build into their report:
Gold fell over 1% on Friday as a stronger USD weighed. I went and added some speculative GLD puts on Friday. Think Gold is set for a short-term pullback to $1960 or so(and possibly below). :
I added more SAGE calls on Friday as well. The company has $1.3 bil in cash, is in a collaboration with BIIB that could bring in over $1 bil in milestone payments, and their market cap is $2.8 bil. BIIB also has a stake, so not sure why they would not just buy the rest of the shares. Think SAGE trades into the $50s and $60s in the coming weeks. FWIW BIIB reports earnings tomorrow, maybe an update on SAGE can put a bid in the stock as well:
VKTX resumed its uptrend on Friday, closing up over 3% after its 9 session winning streak was put to an end on Thursday. They will report earnings on Wednesday after the close and their PH3 Nash data is due out any day now. Still love this story and think it trades north of $30- soon. CBOE added strikes up to $40- in $1 increments. May look to add some more calls today while looking to lock some Junes strikes in to cover costs:
WW fell for the second session in a row one Friday. Still think this trades into the double-digits soon. if it finds green today, may look to add some further dated calls:
AXSM rallied on Friday and I used the move to lock some of my calls in to cover costs. They will be presenting abstracts this week at the annual American Academy of Neurology meeting:
Love this story and its pipeline. Think it trades into the $90s in the coming weeks/months:
Some names I am watching for possible earnings trades this week: ILMN, SHW, SPOT, and ABBV.
And this is what I am watching today: VKTX, WW, SAGE, ILMN, SPOT, SHW, ABBV, ABT, GLD, ALGN, SAM, CMG, EDIT, MASI, BLK, SITE, SMG, FAZ, EXAS, ULTA, YOU, SRS, BLK, SQ, SAGE, ICPT, U, TRIP, and AYX.
Let's have a great day!
-JB