Markets closed mostly higher on Thursday, with the S&P rallying 1.47%, the Nasdaq soaring 3.25%, while the Dow closed slightly in the red. Asia markets closed mixed overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar and Oil are higher while Yields and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-192/
It felt like a squeeze day for markets on Thursday, with many of the beaten up tech names soaring. FVRR closed up 19%, U 10%, ROKU 9%, and so on... Some will argue this is just a bear market squeeze, while others will say the bottom is in. I think there will be more volatility in the coming weeks/months but do think, outside of any black swan event, markets can hold their ground. The SPY closed over that $410 handle I was discussing for the last few days. Maybe some consolidation today and into next week before the $420 test. The January jobs report came out this morning much better than expectations, with unemployment coming in at a a near record low. Will likely pressure stocks at the open but think a bounce will come:
CDLX soared over 13% yesterday. I used the move to close some of my calls out for 60% and 100%. Will likely hold the rest for the eventual move over $10 in the coming weeks:
FVRR soared over 19% on Thursday. I used the move to close most of my calls out for nearly 1000% and over 1500%. Will look to close the last out today and possibly add some later dated strikes for an eventual move over $50:
AI closed in the green again yesterday. I locked some more March calls in for over 400%. D.A. Davidson gave the stock a buy rating with a $30 price target this morning. Think it is only a matter for time before it is $30+. May look for some later dated calls today to play for that move:
Really love this YEXT setup. I added some May strikes yesterday. Only a matter of time before this name starts to get some FOMO. My thoughts yesterday: https://www.optionmillionaires.com/yext-is-next/
I also added more AXSM calls yesterday. Think this heads north of $80 in the coming weeks:
A rough two days for VRTX. Still hopeful here but it will need to find a bid in the next few sessions and get back over $320:
Here are the analyst changes of note for today:
Esperion Therapeutics (ESPR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $9 Inditex
(IDEXY) upgraded to Hold from Sell at Deutsche Bank Meta Platform
(META) upgraded to Hold from Sell at DZ Bank; tgt $180
Neurocrine Biosciences (NBIX) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $130
Sallie Mae (SLM) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $16
Bill.com (BILL) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $128
ImaRx Therapeutics (IMRX) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $5
Kuehne & Nagel International (KHNGY) downgraded to Hold from Buy at Stifel
Lightspeed (LSPD) downgraded to Neutral from Sector Outperform at CIBC
Meta Platforms (META) downgraded to Reduce from Hold at HSBC Securities; tgt $110
C3.ai (AI) initiated with a Buy at DA Davidson; tgt $30
And here is what I am watching today: YEXT, AXSM. PTON, VRTX, U, AI, RBLX, ROKU, YEXT, GILD, CDLX, 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