February 2nd, 2023 Watch List

Markets rallied on Wednesday, with the S&P adding over 1% and the Nasdaq soaring over 2% as Powell and the Fed painted a somewhat dovish tone while raising rates .25%. Asia markets closed mixed overnight while Europe stocks are in the green this morning. U.S. futures are pointing to a higher open, the Dollar, Yields, and Oil are lower while Gold is higher.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-191/

Markets rallied after the Fed raised rates .25%, with Powell alleviating concerns that the Fed would continue to be aggressive to fight inflation. After the close, META reported a great quarter, vaulting the stock nearly 30%. A sign of things to come? Possibly. ALGN is another names that posted solid results and the stock is soaring over 30%. Not going to chase either name but will be looking at some reporting in the coming weeks for similar opportunities. The Golden Cross on the SPY continues to play out and and the SPY closed over that $410 handle I have been ranting about since last week. Not going to say we are heading to $420 this week but would not rule it out, with $405 as support:

I added some YEXT calls as a play on the AI space. Think it's a name most don't know about, and once they do, will look to bid it up. I wrote a quick piece this morning:

I already locked in some of my March strikes in for 100% and may look for some later dated calls to play for a move to $10+ in the next week or two:

Another huge move for $AI, closing up nearly 10% yesterday:

AI is up over 93% in 2023. I think it heads north of $30 in the coming weeks so will continue to hold my March calls:

CDLX rallied another 5% yesterday. Will look to close some of my Mar calls to cover costs and ride the rest:


VRTX looked great at the open yesterday, only to melt lower for the rest of the session. Still holding calls and think this is headed to $340 in the coming days:

I added some PTON calls yesterday and was able to close my weekly calls flat. The stock hit highs not seen since May. A move to $18-20 seems likely

Here are the analyst changes of note:

Hubbell (HUBB) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $205

TransUnion (TRU) upgraded to Buy from Neutral at BofA Securities; tgt raised to $91

Wintrust Fin (WTFC) upgraded to Outperform from Market Perform at Hovde Group; tgt $108

Downgrades: Cognex (CGNX) downgraded to Neutral from Buy at Northcoast Cushman & Wakefield

(CWK) downgraded to Peer Perform from Outperform at Wolfe Research

Getty Realty Corp. (GTY) downgraded to Neutral from Buy at BTIG Research

Jones Lang LaSalle (JLL) downgraded to Peer Perform from Outperform at Wolfe Research

Moody's (MCO) downgraded to Mkt Perform from Outperform at Raymond James

Natl Instruments (NATI) downgraded to Neutral from Outperform at Robert W. Baird; tgt raised to $55

Snap (SNAP) downgraded to Hold from Buy at The Benchmark Company

Snap (SNAP) downgraded to Neutral from Buy at UBS; tgt $10

Shopify (SHOP) initiated with a Sector Perform at Scotiabank; tgt $43

And here is what I am watching:  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

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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