Futures are pointing to a slightly higher open to this holiday shortened trading week, with S&P futures up .12% as I write this. Asia markets closed mixed overnight while Europe indexes are flat this morning. The US dollar, Yields, Oil, and Gold are also all higher.
Welcome to the last week of 2023. Friday kicked off the 'Santa Rally Season' and markets closed mixed in a choppy, boring session. The S&P logged its 8th straight week of gains, its longest streak since 2017. Will it make it to 9? New highs typically beget new highs, so a new all-time high for the S&P this week could do it... guess we will find out. There is not much in the way of data, earnings, or catalysts. Also, this week tends to be a low volume one, with folks on vacation and typically fewer than normal analyst changes. A prefect recipe for some of these 'catch-up names' to continue to play catch-up. This morning there were two more BIO acquisitions:
Have to start thinking 2024 maybe the year of the Bio... The SPY has been churning between $470 and $475 the last few sessions. Maybe some more churn here with both these levels being support/resistance before the next leg on Thursday or Friday:
I added some AMLX calls on Friday. It will likely continue to be a theme into 2024... ie. adding calls in Bio names. Think AMLX has bottomed after getting absolutely pummeled this year - the stock started 2023 at $35. They also have data out in the 1Q of 2024. Think $20+ is coming with or without the data:
NNDM came out again this weekend with a buyout offer for SSYS:
It is a $16.50 all-cash offer. There was a bidding war for SSYS earlier this year. Maybe the start of another one. NNDM also noted they would be willing to possibly raise the offer. SSYS will likely trade $14.50-15.50 today - of course I would like higher. Will look to close more of my Jan and Mar strikes today and hold the rest:
EXAS rallied another 2.9% on Friday and is nearing its 200dma. Once that level breaks($75.27) the $80s should come quick. Will look to lock profits in on the way up:
RDFN closed slightly higher on Friday, but well off the highs and back under the double-digits. Think $15+ is coming first few weeks for 2024:
A flat session for WW on Friday. A good sign that is has remained above its 200dma, which seemed to be its Kryptonite in November. Folks always look for New Year's resolution names this time of year, have to think WW starts to get some serious mojo into 2024:
Still love SMG, TRIP, YOU, and FVRR here - all had quiet session on Friday. CHWY closed off over 2% on Friday. Had to think a pull was coming at some point. Mid-high $20s should be coming soon after some churn.
ALT is a name I am adding to my radar. At the end of November they had some positive PH2 data on their GLP-1 drug. With M&A starting to pick up( two more names acquired this morning), and with GLP-1 being such a hot space, have to think some names will be acquired in 2024... I am hoping VKTX but ALT is a candidate as well :
And still eyeing BIIB, GILD, ROKU, and SPOT as potential spec plays this week.
Lastly, the 2K challenge is starting today. If you signed up and haven't received an email please message JB in the chatroom or send an email to email@example.com.
And here is what I am watching today: ALT, BIIB, GILD, ROKU, SPOT, AMLX, RDFN, CHWY, ALGN, Z, AI, TRUP, ULTA, ISRG, RBLX, TGT, FVRR, AVAV, NFLX, EXAS, AAPL SQ, LRCX, LULU, LLY, NVO, TWLO, NOW, SITE, MELI, AVGO, and WIX.
Let's have a great day!