What a day! Markets rallied on Thursday after the Fed spun a dovish tone and raised expectations for at least 3 - .25% rate cuts in 2024. The S&P closed up 1.37% while the Nasdaq rose 1.38%. Asia stocks closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to another higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-370/
It was a strong session for stocks on Thursday, finding bids after the Fed statement. The Fed did not change rates but did alter their 'dot-plot', which is the expectations for rates into the the future. As of now the Fed is set to cut rates 3 times in 2024, and the market is pricing in more than that. As of now the market is pricing in a 75% probability of .25% rate cuts in March, May, and June of 2024. A pretty sharp turn of tone for the Fed and likely keeps a bid in equities for now, but have to think some will take their tone as overly dovish... time will tell. The S&P is set to open near all-time highs this morning. It is a rarity to see the SPY this far above the upper Bollinger band - the SPY closed at $470.50 and the upper Bollinger band is at $463.13. Not saying a large pull-back is coming, just think it will be a tough task for it to continue on its current trajectory. Some chop today would bode well for more gains into next week:
TRUP started to finally squeeze yesterday, closing up over 11% on news. I used the rally to close some of my Dec strikes for 100% and some of my Jan strikes over nearly 200%. This morning the stock is gapping near the $34 handle. Will likely look to close the last of my Dec strikes out and hold the Jan's. Call me crazy, but I think this can squeeze north of $40 in the coming days. It seems the shorts have picked TRUP as a short candidate, then built the short story after, cherry picking data points, complaints, and the CEO to create their FUD campaign (Fear Uncertainty Doubt). The short interest now stands at 42% of the float!
https://x.com/OMillionaires/status/1734967354960863479?s=20
Great sign that it is back over its 200dma:
VKTX recouped all of Monday's losses and then some to close up nearly 6%. $20+ should come soon and then much higher in the coming weeks:
Puke-bag times for Z, as it rallied over 10% yesterday. Lower rates = good things for the RE market. My Jan $50 calls I sold for a few bags are now up 1600%. Good thing I added those $60 strikes which are up over 600%. Will be locking some of those in right at the open to cover costs and possibly hold the rest into 2024 - but of course scaling more out on the way up:
Another great session for ISRG as it starts to duplicate its moves in Nov and Aug. I used the move to close some of my calls out for 100% and 300%. It is gapping over $330 this morning, will look to close a few more today and use the $335 as a limit for the rest and re-visit:
A choppy session for DOCU, giving back opening gains to trade lower in the morning, only to rally back to close slightly in the green. Will look to close the rest of my calls out today. May look to add later dated strikes if it can break $57:
CHWY also had a choppy session, trading all the way down to $18.71 before closing at $20.46 Today is its inaugural investor day, have to think it will be nothing but a hype fest and the stock will find support today and tomorrow. Will look to take some of my jan strikes off to cover costs when I get the chance, and ride the rest:
A great day for WW, closing up over 7% as reports were out Oprah used GLP-1 drugs:
https://x.com/MWM76/status/1735007164056375538?s=20
Think it will run on its own merits regardless. Will look to add more strikes on a break over that 200dma:
Don't look now but my ALGN calls are also back to life. Will lock some in at the open and hold the rest. Looks like $240+ is coming:
TRIP got an upgrade this morning. Still holding some Dec/Jan strikes. Will look to take more off today. Think $20+ comes quick here on TRIP:
Still love FVRR, SSYS and YOU. May look for some later dated strikes on YOU today.
Thankfully passed on ADBE earnings. The stock is getting hit this morning after the company issued lower than expected guidance. Could be a bounce play today so will be watching, but other wise will be keeping things very small.
Details out on the 2k challenge later today - finally. Thanks for the patience.
And here is what I am watching today: YOU, ADBE, BIIB, GILD, ALGN, DOCU, Z, SPOT, AI, Z, ROKU, TRUP, ULTA, ISRG, ALGN, ADBE, ROKU, RBLX, TGT, FVRR, AVAV, NFLX, DIS, EXAS, AAPL SQ, WW, MA. MDB, AZO, LRCX, LULU, LLY, NVO, TWLO, AZO, ULTA, ORLY, NOW, SITE, MELI, AVGO, WIX, OKTA, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB