December 20th, 2023 Watch List

Markets closed higher on Tuesday, with the S&P adding .59%. Asia markets closed mixed overnight while Europe indexes are flat this morning. U.S. futures are pointing to a lower open, the Dollar and Oil are higher while Yields and Gold are lower.

And here is my rant from yesterday if you missed:

And this is what UPB is reading this morning : https://www.optionmillionaires.com/morning-reads-374/

Markets rallied again on Tuesday and the S&P is now less than 1% away from its Jan 2022 closing high - it has rallied in 8 of the past 9 sessions. This morning futures are finally pointing to a slightly lower open, some of it likely due to FDX earnings after the close yesterday which missed estimates. MU reports after the close today, NKE reports after the close tomorrow, and then PCE data Friday morning. And then of course Friday starts the 'Santa Rally' period, a nice stat here from Marketwatch:

Since 1950, the S&P 500 has averaged a gain of 1.32% and closed higher 78.1% of the time over that period, according to Ken Jimenez, research manager at Dow Jones Market Data.

Not sure how many Santa Rally's began with stocks already on fire, so will be interesting to see how this all plays out. The SPY closed right at highs yesterday and at that $475 level, looks like resistance for now with that $471 handle as support. For what it is worth, the upper Bollinger band is now $473.91. The SPY has closed above the upper Bollinger band for 5 straight sessions, I have never seen that happen before:

Z rallied again yesterday, closing up nearly 3%. I used the move to close some more of my Jan calls for 1900%. As I mentioned on yesterday's watchlist, will wait for a pull-back to add more strikes. I will hold the last of my Jan strikes using the $56 handle as a possible stop. Think Z is headed over $60 in the coming weeks(and higher):

TRIP also rallied yesterday, closing up over 8% on no news. I used the move to close some of my Jan 19 calls for over 300% and went and added some higher strikes. Think mid-$20s is coming on TRIP in the coming weeks. Will be looking to close the last of my $19 calls this week and just ride the higher strikes:

A monster day for CHWY yesterday, rallying over 9% after positive analyst commentary and an insider buy. I used the move to close the last of my Jan $25 strikes for 300% and nearly 500%. I then used some of the profits to add higher strikes to play for a move into the high-$20s in the coming weeks:

WW finally broke and closed over that 200dma yesterday... finally. Magically the stock is getting a positive analyst note this morning, this time a Buy rating and $14 price target from Guggenheim. Think $9+ today and maybe could be the start of a squeeze similar to the move back in August. I may look to add some Feb strikes today to go along with my other strikes:

As mentioned on the last few watchlists', I finally re-entered YOU. Of course this morning it is getting a downgrade from Wells Fargo. Will likely be pressured a bit today but still like it long-term so will be holding my calls and be on the watch to add more later dated strikes once the dust settles:

BIIB closed green in another lack-luster session. It will need to start moving today or the premiums will start to evaporate from my calls. I may actually look to lock the calls in today and re-visit if it can't hold $250:

VKTX is consolidating its recent gains nicely. Only a matter of time before the next leg to the upside:

SMG has been bumpy but it is back near multi- month highs and sure looks primed to fill that gap at $67.50:

Still love TRUP and FVRR into the new year as well:

Will likely be conservative again today while looking to scale out of more risk.

And here is what I am watching today: WW, GILD, ROKU, RDFN, CHWY, ALGN, Z, SPOT, AI, TRUP, ULTA, ISRG, RBLX, TGT, FVRR, AVAV, NFLX, DIS, EXAS, AAPL SQ, LRCX, LULU, LLY, NVO, TWLO, NOW, SITE, MELI, AVGO, and WIX.

Let's have a great day!

-JB

JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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