Markets rallied for the second day in a row, with the S&P adding 1.2% in a strong session. Asia stocks soared overnight while Europe indexes are in the green this morning. U.S. futures are pointing to another higher open, the Dollar and Yields are higher while Oil and Gold are lower.
And here is my rant from yesterday if you missed: https://www.optionmillionaires.com/jb-rant-april-23rd-2024/
And here is what UPB is reading this morning : https://www.optionmillionaires.com/morning-reads-439/
It was another strong session for stocks on Tuesday, with markets gapping higher at the open and holding their gains into the close. The SPY finally broke back over that key support/resistance level of $504.50 - which bodes well for more upside to at least $512.50. There was no catalyst to speak of outside of the tensions in the middle-east somewhat subsiding. Earnings will now steal the show and then PCE data Friday morning. Decent reports by META today and GOOGL/MSFT tomorrow should help keep the market bid heading into Friday. Would want to see $504.50 hold on any shenanigans with the $507.60 level possible resistance for today:
And the amount of stocks over their 50dma continue to trend upward, now 45% of the S&P is over their 50dma:
And lastly, the VIX is now well under that trend line, another good sign:
I finally added AVAV calls, with the stock gapping over the $150 handle at the open. They also had news that they unveiled a new AI capability and Autonomy kit for their drones. Looks primed for a move to $170 in the coming days. Will look to close some calls out to cover costs, when I get the chance, and hold the rest:
DELL finally showed some strength yesterday, rallying over 4% and closing at highs. This morning it is gapping over $125. May look to add some June strikes if it holds $125 in the morning. Think that $140 test is in the cards in the next week or two:
Strong sessions for ACB and CGC closing up 18% and 15% respectively. Only a matter of time before both are in the double-digits:
VKTX closed higher yesterday ahead of earnings today. It is all about the updates and the company conference call this afternoon. The stock is gapping higher this morning. Think any positive updates and stock trades north of $70:
Leave it to the market gods to drive me nuts. My freebie SE $60 calls expired Friday and sure enough it trades to nearly $62 in the first 45 minutes of trading on Monday and is now trading over $64 this morning after another upgrade. Not going to chase but may re-visit on any pullback for the eventual move to $70:
And then RILY. I talked about it a bit on my rants and had traded some April strikes for some profits but the rest expired Friday. Sure enough RILY came out with a clean 10k this morning and the stock is squeezing. The shorts involved in RILY are ruthless, and quite honestly, I fear for my family if I post publicly. I may look to add some spec calls today if it is under $30. I think it squeezes to $40+ quick and could go even higher:
AI looks interesting again here. The stock rallied 30% after its last earnings in February but has since given all those gains back and then some. The stock is now down over 22% YTD. May look to add some spec calls along with some possible June strikes to encompass earnings:
Was eyeing URI, GWW, and POOL for earnings tomorrow but they are making it tough. URI gapped higher right out of the gate yesterday and then went on to rally over 5%, Premiums are insane so will likely just wait until tomorrow:
POOL looks interesting but spreads are wide. May try to put in bids for the May $410 calls but will be patient. Think any decent Q and it trades over $400 tomorrow:
And lastly, GWW. Think it trades back over $1k. Only May strikes, though 1070-1080s look interesting on a risk/reward basis:
And here is what I am watching today: RILY, GWW, URI, POOL, DELL, AVAV, VKTX, CAVA, CDLX, MDB, AVGO, IIPR, NOW, TZA, ,SPOT, EW, TERN, SNOW, LRCX, GPCR, PYPL, and V.
Let's have a great day!
-JB