Markets rallied on Thursday, with the S&P adding 1.80%, erasing the losses from Tuesday and Wednesday. Asia markets closed mostly higher overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open as I write this, the Dollar and Oil are lower while Yields and Gold are higher.
Welcome to the last trading session of 2022. Markets are looking to put an end to its worst yearly performance since 2008... good riddance. Thursday saw stocks recoup the previous days losses - the S&P is now up .14% on the week. There was no true catalyst to speak of outside of weekly jobless claims that came in flat. In this environment, any data pointing to strength in the economy is being sold, so I guess a good sign. Repositioning into the new year could also be citied as a potential catalyst for yesterdays move as folks looked to add some beaten down names into the start 0f next year. Today should be interesting. Would like to see a continuation of the Santa rally, but a big down day today could put the brakes on that pending the first few days of 2023. Hopefully the SPY can find some support at $380 or so today, if not that $376 area looms:
GNRC rallied again on Thursday, closing up over 4% yesterday and is now up over 9% on the week. I used the move to lock in some calls at nearly 100% and over 1`50% and held the rest for a possible move above $110 in the coming weeks. The stock found resistance right at its 50dma at $102.66, so would want to see a break above that soon:
NFLX received an upgrade yesterday and was gapping higher at the open. Figured if the market can hold its gains NFLX would find the $290s so I went and added some weekly calls. Sure enough, NFLX rallied throughout the morning and I was able to close my calls out for 100% and 300%. I mentioned on the private feed that I would look to possibly renter if it held $290. Sure enough in the afternoon it found support there so I added some risky weekly calls into today. The stock is gapping lower with the rest of the market this morning so will need a big reversal for my calls. Calls are pricey into next week, but NFLX is certainly one I will be watching as I think $320+ is in the cards in January:
RARE received a positive analyst note this morning and think it is finally ready to break into the $50s. I think Bio is going to be a hot sector in the 1st half of 2023 so will be looking for some more names as well to play for that... will have more on my Top stocks for 2023 Webinar. Needless to say, will be looking to enter RARE again this morning:
What a monster run for VKTX. The stock has rallied 9 of the past 10 sessions and is up 155% over that time frame. I still think this has major legs left and will be mid-teens in the first few months of 2023. I was looking to add some later dated strikes but will be patient. At some point this will have a pull and I will use that as an opportunity to add more strikes. At the same time. looking to close some of my January calls which have finally started to gain some premium:
SQ rallied over 6% yesterday and my calls are back in the green. Still like this one into 2023 for a move into the $70s(and possibly higher):
Almost looks like a bull-flag here on AYX. My calls are coming back to life and think $55+ comes soon here:
Still eyeing HUM, CI, CMG, WING, EXAS, and IBM as well.
And with that, want to wish everyone a Happy and Healthy New Year!
Here are the analyst changes of note for today(not many):
| Argus cuts Micron to Hold, sees potential operating losses over coming quarters |
| Argus analyst Jim Kelleher downgraded Micron to Hold from Buy. The analyst believes that the company is facing a challenging environment with the prospects of deep operating losses over the next few quarters. While Micron shares are "deeply discounted", he can no longer recommend the stock even for investors who are aware of the risks investing in memory technology and the big stock swings due to volatile pricing, Kelleher tells investors in a research note |
| Opco reveals three biotech stocks that will outperform in 2023 |
| Oppenheimer analyst Hartaj Singh expects the annual healthcare gatherings in San Francisco at the start of 2023 to provide positive momentum to biotech stocks. However, fundamentals for the biotechnology sector "are still in flux," and two important trends make small- and mid-cap names difficult for investors - financing risk and regulatory complexity, Singh tells investors in a research note. The analyst thinks certain large-caps names will be "safe havens" in the first half of 2023, namely Gilead (GILD), Vertex Pharmaceuticals (VRTX) and Regeneron (REGN). The three offer "unique characteristics" that the stocks likely to outperform in 2023, contends Singh. Gilead consensus estimates are too conservative, Vertex's profit growth and pipeline are underappreciated, and Regeneron's base businesses should "shine" in 2023, writes the analys |
| Ultragenyx assumed with a Buy at H.C. Wainwright |
| H.C. Wainwright analyst Ed Arce assumed coverage of Ultragenyx with a Buy rating and $82 price target. Ultragenyx has a diverse, late-stage clinical pipeline of seven programs across three rare disease franchises, Arce tells investors in a research note. The analyst says "good news" on GTX-102 in 2023 could raise the visibility on the rest of the pipeline. Investors are focused primarily on the Angelman syndrome program as the main value driver for the stock, writes the analyst. He believes the shares are trading at a "deep discount" into a "catalyst-rich" 2023 |
And here is what I am watching today: RARE, NFLX, SQ, EXAS, ALGN, IBM. HUM, CI, WING, CMG, ROKU, VKTX, NFLX, PTON, BYND, ALGN, ULTA, BLK, AYX, SPOT, BURL, WYNN, U, and TWLO.
Let's have a great day!
-JB