Markets closed higher on Thursday, in another choppy session, with the S&P adding .39%, albeit with all the gains coming in the last half-hour of the day. Asia markets closed lower overnight while Europe indexes are slightly higher this morning. U.S. futures are pointing to a lower open while the Dollar, Yields, Oil, and Gold are all also lower.
Welcome to December! It was an annoying end to the month of November, although it was the best monthly performance in a few years closing up over 9%. Stocks opened lower after the inline PCE data, chopped around for most of the day, before a last 30 minute rally pushed the S&P into the green and at highs of the day. We get the last wave of data for 2023 in the coming weeks along with the Fed meeting which ends on the 13th. Other than that, will start to see headlines around positioning into 2024 and the Santa Rally at the end of the month. Typically the end of the year into the Christmas Holiday, and then into the first week of January, is historically a strong performing period. The SPY closed back over that $455 handle. That $460 test looks like a long shot today so will be happy with a $455 close into the weekend:. Certainly looks like some consolidation on the SPY before the next leg:
AVAV rallied another 2% on Thursday. I used the move to close a few of my calls out to cover costs ahead of earnings on Tuesday. Will likely look to lock a few more in today or Monday. As much as I think they will post a great Q and raise, the stock has been a divisive one and shorts will certainly look to take advantage if there are any blemishes in the report:
FVRR closed slightly higher on Thursday. Still think $30+ is coming soon here:
VKTX closed up over 3% yesterday and had a nice piece written in Barron's this morning:
https://x.com/OMillionaires/status/1730559147312021565?s=20
Should help put a bid in the stock today. Would love to see a close over $13:
A rough session for TRUP, giving back the gains from the previous 2 sessions. Still like the name for higher in the coming weeks. May look to add some Jan strikes today:
ULTA reported earnings after the close yesterday that bested estimates. They also raised the low end of their guidance... the stock is gapping higher this morning. To be honest, felt like the previous 2 quarters had better results with guidance raises. This market can be so fickle sometimes. Not bearish the name, per se, but may look to nibble some lotto puts at the open for a move to $455-460. It has a history of quick earnings moves after the open and would expect today to be no different. Not to mention, the 200dma is $460:
Not much to update on TRIP, YOU, and ALGN. Still love those for higher in the coming days.
ROKU fizzled yesterday, closing down over 2%. If it can hold $102 or so today I may start looking to add some Dec 15th and later strikes:
And lastly, as mentioned, will be compiling a list of under-performing stocks that could find some legs into 2024. SQ and PYPL are two. Z is another I am adding, it is actually up this year but well off its August highs. Think it can find some legs. Especially with yields starting to fall:
And here is what I am watching today: 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