Markets fell on Wednesday, after Fitch downgraded the US credit rating, with the S&P falling 1.38% while the Nasdaq dropped over 2%. Asia stocks closed lower overnight while Europe indexes are in the red but off their lows. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
And here is my Rant from Yesterday if you missed it(having issues uploading so using Youtube - should have fixed today):
It was a rough session on Thursday, with markets falling after Fitch cut the US's credit which has not happened since 2011. The S&P fell over 1% for the 1st time since May. Will be a key session today to see if market can start to shake off this downgrade or if it is the start of a 5-10% pull. Hope the former but open to the latter. Today we get huge earnings after the close from AMZN and AAPL. Decent reports by both could likely keep the market bid and help the SPY work its way back into the low-mid $450's. Misses and things will get dicey with low $440s next:
YOU gapped higher yesterday after a monster beat and raise quarter while also announcing a dividend. The stock was up over 20% at times after the open only to melt lower for the rest of the day as the shorts took control. I have no doubt one of the shorts reached out to Bloomberg for their hit piece at the start of the week, and would not be surprised to see more antics in the coming days. Not sure I will add any more calls just yet. I was able to close some of my August strikes for over 100% at the open to cover costs, so will likely hold those until the dust settles. Such a great story and would not be surprised to see this $100+ in the next few years but looks like it will be a bumpy road:
TRIP reported earnings after the close yesterday that beat estimates on the revenue side but missed on the EPS. It looked like a great Q to me, or at least better than the ones in the past. Already locked some of the Sept calls in for over 100% to cover costs. If it starts to rally past $19 I may look for some further out strikes to play for a move over $20 in the coming weeks:
OSTK was reversing morning lows to go green yesterday. Once it started to break the $37s I went and added some weekly calls. The stock spiked over $39 and I was able to close some of my calls for nearly 100%. The stock is moving higher again this morning after a huge Q from W. OSTK just reported earnings that bested estimates and cited increased traffic in Canada for their BBBY trademarks they purchased. The US rebranding of Overtsock just started and looks like they are seeing increased traffic. The stigma of 'Overstock' likely held them back at times, and a new names should help drive revenue and growth. I may actually look to add more calls for a move to $50+ in the coming weeks:
FVRR reported a great Q this morning, besting estimates and raising guidance... albeit not as much as I would like to see for an outsized move. Still think back to back Q's of growth and higher profits/margins should embolden traders and the stock should trade higher today. Will need a move to $35+ for my calls to have life. If it breaks $32 in the morning I may look to add some Sept strikes. First big spot is that $30.73 level:
WW and TNDM report earnings after the close.
It is a big Q for WW. The stock is up nearly 200% since its last report. Signs that the decline in memberships is over and growth is returning and the stock soars. Positive comments and updates around their Sequence acquisition will be important as well. No plans to add any more calls just yet and will hold my Oct and Jan strikes - the Octobers are already freebies with profits. The risk is there that the company disappoints and the stock languishes here or tumbles but I like the risk/reward and think it can see much higher in the coming weeks and months:
TNDM ended a two session losing streak, closing higher yesterday despite the market weakness. Still hold a few freebie calls. Will likely just hold those into this afternoon. Think any positive updates and TNDM will trade over $40:
Rough session for DOCU and TWLO. Will be eyeing some TWLO calls today or tomorrow into earnings next week.
Still eyeing some possible ULTA calls as well, and possibly ROKU strikes though the stock was downgraded by C this morning.
And this is what I am watching today: OSTK, TWLO, ULTA, ROKU, YOU, TNDM, WW, SHW, BIDU, ALGN, ISRG, FVRR, ANET, SSYS, BLK, Z, ANET, IBM, NFLX, QQQ, AXSM, and SAGE.
Let's have a great day!
-JB