Markets closed mixed on Wednesday, with the S&P and Nasdaq closing in the red while the Dow finished the day in the green. Asia stocks closed mostly lower overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a flat open, the Dollar and Oil are higher while Yields and Gold are lower.
It was another rocky session for markets on Wednesday, with the Nasdaq tumbling over 1% while the S&P staged a rally off the 1pm lows to make things somewhat respectable. This morning futures are flat ahead of the holiday weekend. Don't forget, markets are closed tomorrow. Next week is the kick-off of Q2 earnings season and likely a very important one, as we will see if the economy is in decline or has bottomed. Will need a strong session today for the SPY to reclaim that $410 area. A good sign yesterday that $405 level held, so looks like strong support there if the market finds weakness today:
I added some CI calls yesterday as insurers were rallying on the heels of a Raymond James upgrade. CI has been beaten up since December on regulatory concerns, but seems those concerns are overblown. UNH reports Friday and think it can provide another catalyst for CI. My calls are up nearly 100% already and will look to close some out today to cover costs and ride the rest into next week and possibly into the following week. If CI rallies above $268 I may actually look to add more strikes. The chart is pinching which usually preceded a quick, outsized move to the upside.. 10-15%+:
Another puncher I have my eyes on is INCY. Bio names rallied yesterday despite the market weakness. INCY looks primed for a move above $76 in the coming days so may look at some calls to play for that move today:
INMD closed back under that 200dma... frustrating to say the least. There were some huge call action yesterday so hopefully we get a rally and the gains hold today. Once we are over that $34 handle it is blue-skies:
POOL is back on watch. The stock was upgraded this morning by LOOP capital. It is off nearly $100 from its Feb highs and should rally ahead of the busy summer season. POOL is such a great story and has ratcheted up its recurring revenue. Think a move over $340 is coming soon:
Another disgusting day for YEXT, closing under the channel and down another 4% as the AI names continued to be under pressure. Still hopeful here but will need to find some footing fast:
VKTX also closed down over 4%. If you look at the chart, yesterdays candle is not so bad, and you can almost chalk it up to consolidation. If the $16s hold today, think it is back over $17 quick as the buy-the-dip crowd comes in:
CDLX gave back 22% of its 80% rally yesterday. Thankful I closed my $5 calls out on Tuesday. Still have those $7.50s and will need the stock to find support today. It was man inside day yesterday and think it can head higher as long as it doesn't break below $4.33:
Still have my eyes on MASI, NOW, and SMG and may look at CMG and ULTA for some lotto calls today. Both CMG and ULTA came under pressure yesterday and they both received upgrades this morning.
And this is what I am watching today: INCY, POOL NOW, INCY, ROKU, SMG, MASI, EXAS, CMG, ULTA, NFLX, YOU, SRS, SPOT, BLK, SQ, MDGL, SAGE, ICPT, DKNG, U, TWLO, TRIP, RBLX, SPOT, AYX, and GLD.
Let's have a great day and have a great holiday weekend!