December 29th, 2023 Watch List

Markets closed mixed on Thursday, with the S&P and Dow squeezing out small gains while the Nasdaq finished slightly in the red. Asia markets were mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a slightly lower open, the Dollar and Gold are lower while Yields and Oil are higher.

And here is my rant from yesterday if you missed: https://www.optionmillionaires.com/jb-afternoon-rant-december-28th-2023/'

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-378/

To say it was a boring session yesterday would be an understatement. The S&P traded in a .29% range. The worst possible action for options - narrow chop = premium crush.:

https://x.com/OMillionaires/status/1740480784195326031?s=20

Hoping today will offer up some more volatility but wouldn't bet on it. It is the last session of 2023. Only a few analyst changes today and market volumes are near the lows of the year. All should change next week, but certainly not the best environment to add much risk. Some nice info here from Marketwatch this morning... or at least some data:

“Since 1950, there are 11 instances where the S&P 500 fell 20% and then climbed to within 1% of its prior all-time high,” says Lee in a new note. “Eleven of 11 times, the S&P 500 quickly made an all-time high.”

The median time it took to hit the record was seven days, and as long as 20 days. This would mean new highs in January 2024.

And it’s likely the market will make further gains: “The median max gain over the next 18 months is +22%. So yes, this is a launch point for further gains. There is only 1 instance, May 2007, that the max further gain was nominal (<5%)," writes Lee.

Would say the odds for the S&P to finally break all-time highs within the next 20 days is high. Would also think most of the re-positioning and window dressing has been done for folks so today maybe another lackluster session. Will certainly look for opportunities but not going to force anything. Would want to see $475 hold on any weakness with $477.50 as resistance and hoping no shenanigans today like last Wednesday:

I added more ALT calls yesterday. I want to be able to lock the last of my $15 calls in while also still being able to take advantage of a possible FOMO move. ALT traded all the way up to $12.51 yesterday before closing at $11.62. Still think $15+ is coming but will continue to be volatile:

TRIP received a PT upgrade this morning. The stock has been rangebound the last week or so. Once that $22 handle breaks, the $25s are next in the coming weeks:

WW sold off 5% yesterday, giving back some of the last weeks gains. There was no catalyst to speak of outside of some put volume. Hopefully it finds a bid today. If not, that 200dma better hold at $8.20:

RDFN broke into the $11s yesterday, before giving all the gains back to close at $10.50. Still in a nice uptrend here and only a matter of time before its $12+. Will start looking to lock some of my calls in:

MASI recouped some of Wednesdays losses. May look to add higher strikes if it regains that $120 handle. Think $135+ is coming:

More flat sessions for CHWY, FVRR, SMG, TRUP, and EXAS. So no new commentary to add there.

Had ROKU and SPOT on the watchlist yesterday for potential spec trades, both also closed mostly flat. Will be eyeing again today.

Lastly, still working on my Top 5 stocks for 2024 Webinar. Hope to have it out by Monday.

Want to wish everyone a Safe, Happy, and Healthy New Year!

And here is what I am watching today: MASI, SPOT, ROKU, ALT, BIIB, GILD, 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!

-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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