December 5th, 2023 Watch List

Markets closed lower to start the week, with the S&P finishing down .54%. And that comes with an asterisk as the small-caps actually rallied over 1%. Asia markets tumbled overnight while Europe indexes are mostly higher this morning. U.S. futures are pointing to a lower open, the Dollar and Gold are higher while Yields and Oil are lower.

And here is my rant from yesterday if you missed it: https://www.optionmillionaires.com/jb-afternoon-rant-december-4th-2023/

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-363/

It was a red start to the week, with stocks giving back some of last weeks gains. The SPY found lows at 11am before bouncing a bit and chopping around into the close. If there was a silver lining to yesterday's action, it was that small-caps outperformed. Today we get the JOLTS report at 10pm. It used to be a data point that didn't do much for markets over the years but has since tuned into an important one, as folks look to see if the Fed's policies are bearing fruit. Hopefully an inline or even worse than expected number and markets can find a bid. Maybe some more chop here today and then the market can work on testing the $460 handle on the SPY into the end of the week. Would want to see $451 or so hold on weakness:

Yesterday was a profit taking(or making day):

I locked more AVAV calls in yesterday with the stock hitting all-time highs ahead of earnings after the close today. As I mentioned on yesterdays watchlist, the name is a divisive one so did not want to keep all the risk on into the report. I was able to close more of the calls out for over 100% and now ride some freebie calls plus profits into the report. Think a beat and raise and $150+ comes. Inline numbers and the stock will likely be pressured back into the low $130s:

Z rallied again yesterday and I used the move to lock some of my Jan calls in for 100%. I am now riding free and think the stock can trade north of $50 in the coming weeks. I may actually look for some more later dated calls once that 200dma breaks at $45.83. Z falls into one of my 'catch-up' names into 2024:

FVRR rallied out of the gate, testing $27.99 yesterday before pulling back to close red. I used the morning rally to close some of my Dec strikes for over 100%. Think $30+ is coming soon on this name:

VKTX soared yesterday, breaking over that $15 handle and closing up over 15%, as a privately held Bio company focused on GLP-1 was acquired for a huge premium by Roche. Still boggles my mind that VKTX still trades down here. I was able to close some of my Jan strikes forever 300%. I may actually look for more further out strikes on VKTX today on strength:

Tough sessions for SSYS and WW, still like them both for higher in the coming weeks and months.

Working on my 'catch-up' list. SMG is another I will be watching. Has a gap at $67.50. May look for some calls on any strength today:

And here is what I am watching: SMG, SPOT, AI, 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

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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