Markets fell again yesterday, with the S&P closing down .76% and for the second session in a row. Asia markets closed in the red overnight but well off their lows while Europe indexes are also trading lower. U.S. futures are pointing to a bounce, the dollar is lower while Yields. Oil, and Gold are higher.
Here is my rant from yesterday if you missed it:
And here is what UPB is reading this morning:
It was another rough session for stocks on Wednesday, with markets trying to find some bids in the morning, only to reverse gains into the red by lunchtime. The Fed minutes at 2pm did little to change the momentum and the SPY broke the $440 handle into the close. The S&P is now down 1.35% on the week and looking for its 3rd week of losses. This morning, WMT posted a great quarter, beating estimates while raising guidance. Jobless claim numbers also came out higher than expected. Hate to see bad data be good for markets but looks like the number was well received as futures jumped - bad data will help the Fed take their foot off the rate hike pedal. For once, China is not in the headlines. This morning it is all about Yields at levels not seen since 2008 while Gold is on a 9 session losing streak, the longest since 2017. The lower Bollinger band on the SPY is $440.62. Would be hard pressed to think it can close under that again today. Think a bounce today and tomorrow pending any new crazy headlines. If the selling comes in after the open, I finally will add a hedge via TZA and FAZ calls and look at some spec puts in NOW, AVGO, LRCX.
CISCO reported a great Q after the close yesterday, raised guidance for next Q, but trimmed their revenue guidance for the full-year. At first the stock tumbled but then t reversed course and is trading higher this morning. Should bode well for ANET, which I think will trade north of $185 today. Will look to close some more of my calls today and think it will retest its post-earnings high in the $190s soon:
A rough day for WW yesterday, ending the session down over 4%. The CEO was on CNBC after close the close yesterday:
You can kind of get the idea on how the company is in the midst of a turn-around. I added more calls yesterday with the stock near lows. Will likely stand pat with what I have for now:
ROKU traded 2% lower yesterday, breaking under $80 in the morning before recouping that level in the afternoon. Will need a big move today and tomorrow for my calls. If the market finds footing today, may look for some strikes into next week for the eventual move back into the $90s:
Still eyeing some ULTA calls into earnings next week. Premiums are expensive but do think they post a beat and raise and the stock trades above $490:
And this is what I am watching today: ULTA, WW, VKTX, ROKU, ALGN, FZA, TZA, CMG, QQQ, CMG, SPOT, TEAM, ISRG, BLK, IBM, and NFLX. If the SPY breaks $439 may look at some spec puts in NOW, AVGO, LRCX.
Let's have a great day!
-JB