Markets closed higher to start the week, with the S&P adding .69%. Asia markets closed in the green overnight while Europe indexes are following suit with the DAX up over 1% as I write this. U.S. futures are pointing to a higher open, the Dollar, Yields, and Oil are lower while Gold is higher.
Stocks reversed opening gains on Monday, testing lows at the noon hour, only to reverse course and close at the highs of the session. Seems lately the pattern for markets is to sell any gap. This morning futures are pointing to another green session. All eyes on are NVDA earnings tomorrow after the bell - almost feels like it is the most anticipated report of this Q. Would think they post another great Q but will need a big raise for the stock to at least hold its gains. Friday is the next possible catalyst for markets with Powell speaking at Jackson Hole at 10am - which I think means noon eastern time. Certainly can move markets. Relief bounce or bottom? This week will go a long way in determining that. If NVDA can post a stellar quarter and Powell can quell concerns, think $445+ comes before the weekend. A big miss from NVDA and/or more hawkish rhetoric from Powell and the selling resumes and we test the $429 handle on the SPY. I think the former outcome is more likely but will continue to hold my TZA calls as a hedge:
I added some AI calls yesterday as anything #AI related was getting a boost ahead of NVDA earnings. The chart looks great after its pull from the mid-$45s a few weeks ago. Think a bounce to its 50dma at $37.50 is possible. Will look to close some of my calls out to cover costs today and ride the rest for that possible outcome:
WW fell 2% yesterday but held that $10 handle. Not much commentary to add here. Still love the story and think $12+ soon(and beyond):
VKTX put an end to its 3 sessions losing streak, closing up over 1% yesterday. Would like to see some continuation today. Still eyeing some later strikes to encompass data in the 3Q:
MDT reported a great Q this morning and should bode well for names in the med-tech space. ISRG is the one I always look to. Think it will trade up to $300 this week. Will look for calls at the open:
Another down session for ULTA, closing back under its 50dma and at $447.91. DKS reported a miss this morning with a big part of the miss being related to shrink... ie. Gang thefts. TGT had a somewhat rough Q last week as well - it rallied at first but has since given back all its gain. Still eyeing some calls but if I do enter, will likely look to exit some or all before Thursday after the close:
BIDU is up this morning after better than expected earnings and some updates on their AI opportunities. As I have been saying for years, BIDU has been using the #AI term in their press releases almost every Q and way before the herd. Haven't been a fan of BIDU for sometime but do think there is an opportunity for them to outperform in the coming months if they can be the leader of #AI in China. Of course the current economic backdrop in China is not the best right now, which is some of the reason why BIDU is down $30 in the past few weeks on no new catalysts. Think it can find a bounce today and trade north of $145. May look at some spec calls at the open:
Gold found support again yesterday. Still think a test of $1910 is coming soon. May look to add some GLL calls to my GLD puts if there is weakness today:
And lastly, still have my eyes on ROKU. One of these bounces will be the start of a $20+ multiply rally:
And here is what I am watching today: ISRG, BIDU, ROKU, WW, VKTX, GLD, DUST, GLL, ALGN, CMG, QQQ, SPOT, TEAM, BLK, IBM, and NFLX.
Let's have a great day!
-JB