Markets tumbled on Thursday, with stocks reversing gains in the afternoon to close at lows. The S&P finished down 1.23% while the Nasdaq fell 1.4%. Asia markets closed lower overnight while Europe stocks are falling this morning. U.S. futures are pointing to a slightly higher open as I write this(that will likely change with the Jobs report), 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-afternoon-rant-april-4th-2024/
All was well for the markets yesterday. At the open the S&P had recouped all the losses on the week and looked poised for more gains... that is until the afternoon when some of the Fed Speakers hinted at the possibility of zero rates cuts this year. Some also cite heightened tensions in the Middle-east with Iran. Either way, the SPY, which was almost at $524 after the noon hour, tumbled for the rest of the afternoon to close at $513.07 or more than $10 off the highs. It was a 2.08% trading range and this is after last weeks sessions that saw some trading ranges of less than .2%. Just goes to show how sensitive the market is going to be in regards to the Fed now. The next meeting is in 3 1/2 weeks. Powell is going to need to address this soon.
This mornings Jobs report will not help matters. It came in hotter than expected with upward revision to last month. Despite the number, futures held their ground. Will be interesting to see if that holds when the market opens. Next week we get CPI data on Wednesday and then earnings season kicks off Friday. That CPI will be key. The SPY broke $518.40 and came down to that $512.50 area I have been mentioning for weeks. Sure enough, the SPY tested $512.51 right after the jobs report release. If things get dicey at the open, want to see that hold with $518.40 being resistance on the way up:
DELL soared for the 2nd session in a row on Thursday, testing $136 before succumbing to the afternoon sell-off to close in the red - an epic two day rally. I used the move to close more of my DELL calls in for 650% and held the last few even on the dip. Think DELL is poised for a move to $150+ in the coming weeks. I may look to add some later dated strikes today for that move. Was saying this on the last few watchlists and in the chatroom:
'Call me crazy, but I think this can overshoot to at least $135'
Well that escalated quickly. Likely some consolidation before the next leg, which is healthy:
ACB rallied 31% off of the lows yesterday and continues to be extremely volatile. I used the move to close more of my $7 calls for over 1100%. Think ACB is on a crash course with the double-digits but will be patient adding any more positions for now:
Same for CGC, it remains extremely volatile. I have already locked in plenty of profits on the name so will just hold the last of my $10 calls and the May 15 freebies:
NNOX broke over $11 yesterday morning. I thought the May $15 call looked decent on a risk/reward basis so added some. Instantly the stock shot to 11.30. Coincidence? Maybe. NNOX tested $11.39 before falling in the afternoon with the rest of the market to close at $10.87, albeit barely in the green. Still think this is headed higher in the coming weeks:
I put SE on the watchlist yesterday for the first time in years, and sure enough, it gaps higher at the open. Once it held $55 I went and added some calls... the instant I did the stock spiked to $56... coincidence again like NNOX? Maybe. The stock then gave back most of the gains in the afternoon with the rest of the market. This morning Loop capital raised their PT on the name to $59 from $43. Still love this one for a move back to $60 in the coming week or two:
Not much commentary to add on RILY. It has closed in the green for 6 sessions in a row and the higher it goes, the higher the odds of a short squeeze. That $25 handle looks to be the breakout point to me and may add some more strikes if that falls:
I went and added some hedge puts on AVGO in the afternoon, with markets tumbling. AVGO dropped quickly into the $1320s and I used the move to lock some of the puts in for over 200%. Still held a few into today just in case.
Kicking myself a bit for SPOT. I sold the last of my $285 calls on Wednesday afternoon only to watch it climb to $304 yesterday. At one point the $285 calls were over $20 from my .35 entry. At the same time, It could have gone the other way and I lose some profits so can't fault myself for taking profits for over 10 bags, but stinks a bit to see it up 50 bags. SPOT may consolidate a bit here and then may revisit for a move to $310+:
GLP-1 names have stunk up the join this week. Hopefully it sparks some M&A this weekend.
And here is what I am watching today: DELL, SPOT, AVGO, MDB, ISRG, EW, IIPR, CGC, ACB, RILY, VKTX, TERN, MDB, SNOW, SPOT,, CDLX,, NOW, LRCX, GPCR, NFLX, PYPL, RDDT, IWM, and ADBE.
Let's have a great day!
-JB