Stocks rallied on Tuesday, with the S&P adding 1.45% in a strong session. Asia markets closed mostly higher overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a flat open, the Dollar is lower while Yields, Oil, and Gold are higher.
Markets soared yesterday, after a surprisingly weak JOLTS report - ie. job openings - coupled with weaker than expected consumer confidence data. This morning ADP employment numbers also came in worse than expected. Futures rallied after the report. Hate to think the Feds goal is for people to lose their jobs, but seems like the market is pricing that is as a condition of success for their current tightening policy cycle. The SPY broke and closed well above the 50dma yesterday, a great sign. It will be put to the test tomorrow with PCE data and then on Friday with the August Jobs report. Any more weak data this week and the SPY sure looks like it wants mid-$455s. A remarkable reversal from the low $430s just two weeks ago. That $443 handle was resistance on Monday so would want to see that hold this week if we do find some selling pressure:
ISRG rallied again yesterday, closing up nearly 3% on no news. I used the move to close some of my calls out for 75% and held the rest. Still think this heads north of $320 this week. A tweet from yesterday:
Will look to lock a few more calls in on a break over $315 and hold the rest:
BIDU also closed up over 2% yesterday. I added some weekly calls in the morning then locked some in for 50% in the afternoon. The stock is gapping lower in the pre-market. The 50dma is $141.95, once that breaks $145+ should come quick.. Will likely hold the rest of my calls using $137.50 or so as a stop:
ROKU closed up nearly 5% yesterday on no news. I added some Sept 15th strikes for the eventual move back over $90. Will look to close some of the calls out for 1005 when I get the chance - it came close yesterda- then hold the rest:
LULU rallied with the rest of the market. If it shows any signs of weakness today, will look at some spec puts to play for premium build into tomorrows earnings:
WW failed to show any continuation yesterday, although it did close above $10. Not adding anything just yep. Hopefully holds that $10 handle today and starts that rally to $12+:
GNRC could be one of those names that rallies off the current hurricane cycle. Yesterday it almost looked like folks would sell the news, but it found support throughout the day and closed at highs. It is gapping this morning. May look at some weekly calls(likely $128s) and/or some Sept 15th calls(likely $135s) to play for more gains in the coming sessions as folks look for hurricane plays. HD and LOW are the obvious once but many don't think of GNRC:
Lastly, AI seems to have broke its downtrend, A move to $36+ can come if markets hold their ground. Will be watching for some possibly weekly spec calls:
And here is what I am watching today: GNRC, VKTX, WW, ROKU, LULU, ULTA, ISRG, GLD, GLL, AI, LRCX, NVDA, ALGN, CMG, QQQ, SPOT, TEAM, BLK, IBM, and NFLX.
Let's have a great day!
-JB