Stocks rallied on Tuesday, reversing Monday's losses, with the S&P adding 1.46%. Asia markets closed in the green overnight while Europe indexes are higher this morning. U.S. futures are pointing to a slightly lower open as I write this, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-190/
Markets reversed morning lows to close solidly higher on Tuesday. The SPY was trading in the $398s in the pre-market session and closed at $406.48... a strong session to say the least. Today will be a huge day with the Fed decision along with a monster slate of earnings after the close to include AMZN, GOOGL, and AAPL. As I have been saying, think the SPY is headed to $410+ in the coming days pending any crazy move by the fed or a huge miss by any of the mega-cap names, not to mention that golden cross on the SPY is playing out perfectly:
AI soared yesterday on news of a new product suite offering : https://c3.ai/c3-ai-announces-launch-of-c3-generative-ai-product-suite/ .
It was like putting a match to a drum of gasoline... the stock does not need much to find buyers with the current environment around A.I. I used the rally yesterday to lock in the rest of my Mar 22.50 calls for nearly 2,000% and added and closed some Mar $25 calls for nearly 300%. AI has been a cash cow the past two weeks. Eventually it comes under pressure so don't to hold too much risk when that happens. At the same time, could see this getting some FOMO and trading over $30 so wanted to have some exposure. Will likely just hold my Mar $25s as long as it holds $19 for a possible move to $30 in the coming weeks. What a play this has been:
ROKU closed up nearly 7% yesterday and I used the move to lock the last of my Feb calls and add some March strikes. As I mentioned on the watchlist yesterday, think SPOT and NFLX earnings bode well for ROKU. Will look to close some of my March calls when I get the chance at 100% and hold the rest into earnings, which should be at the end of Feb:
AXSM had another green session, closing up over 2%. A good sign for once as this stock always seems to rally after the open then fade for the rest of the day. Think $80+ comes soon and still looking for some later dated strikes:
It was also a strong day for CDLX yesterday, with the stock adding over 9%. Will look to close some of my Mar calls soon and ride the rest. Looks like this is headed above $10 in the coming weeks:
PTON reported a mixed bag this morning. Will need a huge move for my lotto calls. Likely will not add anything here but will keep on watch.
DECK reports earnings after the close tomorrow. Could be a name that beats and raises. May look to add some calls to play for a move above $450.:
The Fed this afternoon will create some volatility, and renewed hawkishness could push markets lower, so will be cautious today and would look to start locking some of my positions if the market tumbles after the Fed statement - although I think that is unlikely.
And here is what I am watching today: DECK, PTON, VRTX, U, AI, RBLX, ROKU, YEXT, GILD, CDLX, AXSM, SAM, IBM, SQ, ZYME, ICPT, SPOT, U, MASI, ROKU, NFLX, ALGN, GNRC, VKTX, UDMY, RARE, SAGE, and CMG.
Let's have a great day!
-JB