Futures are pointing to a higher open to start the week, with S&P futures up .26% as I write this. Asia markets closed mixed overnight while Europe indexes are in the red this morning. The Dollar and Yields are higher while Oil and Gold are lower.
Markets tried, but failed, to end a 3 session losing streak on Friday with the S&P reversing early afternoon gains to close down .53%. This will be a key week for stocks to see if they can hold ground and the S&P can find a bid or that 50dma at $438 on the SPY comes into play and the bears will start to smell blood. This week there are over 1000 companies set to report earnings led by DIS:
We also get inflation data at the end of the week with CPI on Thursday and PPI on Friday. Would want to see the SPY back above that $450 handle by Wednesday. For what it is worth, there was a fat finger paint on the SPY of $460.26 in the pre-market. It is eery how some of these fat fingers actually come to fruition in very short order, so will be watching:
It was a rough session for WW, holding $10 at the open only to give it all back and then some to close down 23%... just nasty. I tweeted:
I really don't think much at all has changed with the WW story. If anything, the prospects of a turnaround have increased with the first intra-year member increase in history. MS came out and reiterated their Overweight rating and $13 PT near the close Friday. I think this trades back over $10 in the coming weeks and will look to add some more calls today - and yes, I will have my thoughts out on the blog later this week on WW and why I think it will be much, much higher in the coming months:
I added OLED calls on Friday, with the stock running after a great earnings report. I think it trades north of $170 in the coming days:
I also added some TWLO calls, they report earnings tomorrow after the close. I will likely look to close some/all out before the close tomorrow unless I can get some out for 100% and ride the rest free.:
Chalk up another disappointing Bio name... this time it is SAGE. Despite getting FDA approval for MDD, the stock is getting trashed this morning after the FDA failed to approve their drug for MDD as well - a much bigger TAM. SAGE does not have much in the way of a pipeline, so pending any crazy catalyst, the stock likely languishes here in the teens. On the flip side, the FDA denial of SAGE makes AXSM more attractive and shows how impressive it was that they had their MDD drug approved last year. AXSM also reported earnings this morning that showed strong sales growth. The company had announced an offering back in June that tanked the stock. Think this report coupled with the SAGE failure will push it back into the $80s. May look to add some calls today:
YOU was back in the red on Friday and has now done a complete round trip from its earnings gap. Still watching to add more calls once the sellers/shorts are done:
FVRR gave back some of its earning gains on Friday, closing off 5%. Still like this for a move to $40+ in the coming weeks but will need to crack that $35 handle soon for my August strikes:
RBLX, RNG, and AYX are names I may nibble some spec calls on into earnings. RNG and AYX report after the close today and RNG Wednesday morning.
And this is what I am watching today: AXSM, YOU, WW, RBLX, RNG, AYX, ULTA, CMG, SPOT, TEAM, ROKU, OSTK, SHW, BIDU, ALGN, ISRG, ANET, SSYS, BLK, Z, IBM, and NFLX.
Let's have a great day!
-JB