Markets closed mixed on Tuesday, with the Nasdaq closing up .57% while the S&P and Dow closed in the red in a choppy session. Asia markets closed in the red overnight while Europe indexes are higher this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
It was a whipsaw session on Tuesday, with markets gapping higher after the CPI read, only to give back all the gains and then some. Stocks bottomed at 11am and battled back with the S&P closing nearly flat. Still think this $420 handle is coming on the SPY. This morning was retail sales numbers for January that came in well above expectations. One of these positive data reads will finally lead to a positive market reaction... needless to say futures fell some more after the data. Would like to see the SPY hold that $410 handle on weakness today:
TRIP reported a monster Q after the close yesterday, although they did not issue guidance due to the uncertain environment. Some data points:
TRIP has reported strong Qs before but the gains never seem to hold. One of these Q's the morning gains hold and it melts higher. Think $30+ is coming soon. Will look to lock some of my March calls in to cover costs and ride the rest while using $26 or so as a stop:
And longer view:
RBLX reported earnings this morning that were better than feared. The stock is soaring after the report. Still holding some $50 strikes. Not sure it gets there today or this week but hopefully there will be some premium in the calls to lock some in today and hold into tomorrow
AI came and tested the $20s before bouncing yesterday. Seemed like buyers were coming in so I went and added some weekly strikes. The stock chopped around for most of the day before soaring into the close. I closed my weekly strikes for 50% and added some strikes into next week. As I have been saying, think this AI theme/story is only going to gain more eyes in the coming days and weeks, and folks will be searching for ways to make money off it... ie. Stocks.:
ROKU reports earnings after the close today. I expect a strong quarter as always and maybe the market will finally react accordingly. Think any beat and raise and the stock clears $70 - there is plenty of room to $75+ as well. Of course, any inline or downbeat results and the stock will languish into the lows $50s. Hoping for a gap and run today so I can lock some of my calls in and ride some free into the report:
The last of my VKTX $10 calls expire Friday so will be looking to close them out in the next day or two and add some later dated calls to play for a move to $15+ in the coming weeks:
Still eyeing EXAS for some calls and may look at some TWLO lotto calls for their earnings after the close today:
And here is what I am watching today: VKTX, EXAS, TWLO, TRIP, RBLX, SPOT, NFLX, AYX. CMG, AI, YEXT, ROKU, GILD, CDLX, SAM, IBM, SQ, ZYME, ICPT, U, MASI, ALGN, and GNRC.
Let's have a great day!
-JB