Markets closed mixed on Wednesday, with the S&P squeezing out a .11% gain while the Dow closed slightly in the red. Asia stocks also closed mixed overnight while Europe indexes are mostly higher. U.S. futures are pointing to a higher open, the Dollar and Gold are lower while Oil and Yields are higher.
And here is my Rant from yesterday if you missed : https://www.optionmillionaires.com/jb-afternoon-rant-april-3rd-2024/
Markets closed mixed yesterday, with the S&P putting a halt to its 3 session losing streak. Fed Chair Powell spoke at Stanford yesterday and his comments did little to change expectations for rate cuts. The market is still giving a 61% probability of a cut at the June meeting. All this means is the CPI data, due out next week on the 10th, will be extremely important. A hotter than expected number and things will get interesting. Either way, will be something to watch. The SPY gapped lower at yesterday's open, before re-capturing that $518.40 handle. It broke into the $520s but then found late day sellers to close at $519.41. Still have that $518.40 area as support if sellers come back in today while that $524 area looks like resistance:
What a day yesterday for some of the individual names I am in:
SPOT announced they were raising prices along with adding a new subscription tier. The stock soared in the pre-market and gapped higher at the open. I was able to close some of my calls I added Tuesday for over 1500% at the open. SPOT chopped around for most of the day and I watched premiums erode. I didn't want to lose more profits so I closed the last of my calls out for over 1300%. Sure enough SPOT spikes into the close over $290. As much as I think it can test $300 soon, will likely wait for a pullback to re-enter. Sure was a fun one:
DELL rallied nearly 9% yesterday on no news or catalyst. I was waiting for the tight bollinger band break-out and finally got it(just like SPOT). I closed some of my DELL calls for 200% and 300% and still holding some for the possible move over $130. Call me crazy, but I think this can overshoot to at least $135. I may actually start looking for some $150+ strikes as well today. The last of my $130 calls closed up over 500%. I will likely close a few more today and then hold the rest:
ACB soared again yesterday, closing up 44% and is now up 64% for the week. My $7 calls I added for .20 closed 1.46 x 1.60 or 700%+. I used the move yesterday to lock some of the calls in for 100% and 500%. Will look to close a few more out today and may look for some higher strikes as well. Think this cannabis theme is not going anywhere anytime soon, if anything I think it gains more steam:
CGC also soared over 30% and I used the move to close more of my Apr 10 calls for nearly 700%. Of course I wish I still had my Apr 19th $8 calls from .18 which are now $3.10 but can't fault myself for taking profits, especially on a name that has been so volatile as of late. Still think $17-18 coming. May actually look at some June strikes today ontop of the last of my Apr 10 and May 15 calls. I expect more wild swings in the coming days, so will continue to be a tough hold:
Surprised IIPR has failed to rally with the rest of the space but I think it is more of a function of being a REIT and falling with those names. Still bullish IIPR and may look for more strikes today on strength:
I finally added those RILY calls. It's a hero or zero play. If the company comes out with their filing and its somewhat clean, the stock will squeeze into the mid-high $30s (and maybe higher). If there are issues in the filing, think it trades down and my calls will take a hit. I like the risk reward and will look to close some of my calls out to cover costs when I get a chance and ride the rest. That $25 handle breaks could really gain some traction, so a spot to watch today:
I also added some NNOX calls. The stock soared after a filing shows NVDA had a nearly $400k position in the company. It is small but I think speaks volumes. Think NNOX will work its way to $13 or so in the coming days - you can hear my thoughts on NNOX on the rant (link above):
Want to see PYPL back over that $67 handle. Still hopeful on a move into the $70s in the coming days:
Still holding my MDB its as a hedge and they are serving their purpose. They were actually nearly a double yesterday morning. Will likely just continue to hold, possibly to expiry... though I think it looks susceptible:
For the first time in a while, won't mention the GLP-1 names... I am still bullish but they need a kick - M&A would work...
And lastly, SE looks interesting here. If it finds a bid today I may start looking for some calls to play for a move back over $60 in the next week or two:
And here is what I am watching today: IIPR, SE, CGC, ACB, RILY, VKTX, TERN, MDB, SNOW, SPOT, EW, ISRG, CDLX,, DELL, AVGO, NOW, LRCX, GPCR, NFLX, PYPL, RDDT, IWM, ADBE, and ACB.
Let's have a great day!
-JB