Futures are pointing to a green start to the week, with the S&P set to open .46% higher as I write this. Asia markets closed modestly lower overnight while Europe indexes are rallying this morning with the DAX up over 1.5%. The US dollar and Oil are lower while Yields and Gold are higher.
Markets will try to find some footing this week and look to put an end to the 3 week losing streak. There are still plenty of earnings on tap and data, including PMI on Wednesday. There will be more companies reporting from the retail sector as well including Lowes, and Costco. Any inline reports could help mitigate some of the pain from Walmart and Home Depot's earnings last week. The SPY closed right below that 50dma. Would want to see that hold today and then a close over the $400 handle in the next day or two, which should bode well for more highs and the eventual $420 test:
Here are the implied moves for earnings this week:
ICPT, YOU, AI, and CDLX all report:
AI is less about the earnings, in my humble opinion, and will be more about the commentary/guidance/conference call. Would be nice to see it rally near $30 or above before Thursdays close so I can lock more calls in and ride a few into the report. If not, I will likely just hold what I have:
ICPT reports Thursday morning. Still in the March strikes after closing the 22.50s for nice gains. Think this can eventually trade into the $30s with all this hype around NASH:
I added some YOU calls on Friday. It is such a great story. I am hoping to have a quick DD piece out on in today or tomorrow. Think this trades into the high $30s and maybe above $40 on a strong beat and raise when they report Wednesday morning. Will look to close some of my calls out to cover costs if I get the chance:
Still love CDLX but will need a big report for my calls to come back to life. Ditto with AXSM, though any positive update on their Auvelity launch could spark shares.
I added OLED calls on Friday after their earnings report on Thursday. The stock reversed a morning fade to close right near the highs of the day and up over 6% on the session. I used the move to close some of my calls for profits and will look to close some more today on a move over $140. Think OLED can test the mid-$140s in the coming days:
I also added BYND calls on Friday. The stock traded into the low $20s before reversing course. I was able to close some of the calls for over 100% to cover costs. Will need a big move this week for the rest of my calls to come back to life. Still so much negative sentiment over the name, which makes me think this may squeeze above $30 at some point:
Lastly, CMG is always a name I watch for reversals. They reported a tough quarter a few weeks ago, although they are still growing double digits. Think at some point this does its typical $150-200 multi-day bounce. It is down 6 days in a row, if it finds footing today I may look to add some weekly strikes for a move back into the mid-$1500s at least:
And this is what I am watching today: CMG, YOU, YEXT, DKNG, MASI, EXAS, U, SMG, TWLO, TRIP, RBLX, SPOT, NFLX, AYX. CMG, ROKU, GILD, CDLX, SAM, IBM, SQ, ZYME, ICPT, ALGN, and GNRC.
Let's have a great day!
-JB