February 5th, 2024 Watch List

Markets fell to start the week, with the S&P dropping .32% while the Dow fell .71%. Asia stocks rallied overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a flat open, the Dollar and Yields are lower while Oil and Gold is higher.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-399/

Stocks gave back some of last weeks gains yesterday - sans the Chip/AI names - on no real news to speak of. This morning it looks like the markets are setting up for more chop. Earnings from LLY and SPOT both beat expectations. Both are rallying in the pre-market. After the close today we get SNAP earnings, a name that has moved some Tech names in the Ad space in the past, so one to watch for sure. After three months I finally added more support/resistance lines on my Daily SPY chart. $490 looks like key support right now on any selling today with the $494 highs from yesterday being possible resistance:

Also something to watch is the small-caps, which have fallen in 4 of the past 5 sessions and closed off over 1% yesterday. Hopefully just some normal churn but the IWM did close under its 50dma for the first time since Sept. Would want to see that $192.26 reclaimed soon:

I added some DWAC calls yesterday. Think it is the first time I have traded the name. It is not a fundamental play, but more of a spec play. If you have listened to my rants the past few weeks, you know my thoughts... ie. a proxy on Trump and free speech. It had a huge move back in the 'SPAC Days', where the stock traded top to $175(I think it was over $200 in the pre-market). Not saying the same thing is going to happen here but do like the chart with a potential bull-flag setting up. Think it could move at least $15 more to the upside. I was able to close some of my calls out for over 100% to cover costs. I may actually look to add some strikes north of $60 into next week on any strength while also looking to close the rest of my weekly strikes:

I also finally added some ADBE calls. Will have a tight leash today if the stock fails to hold $620, but do think this trades north of $650 in the coming days:

What a rough day for ROKU, trading to lows at yesterdays open and never finding a bid to close off nearly 4%. Still think a breakout is imminent, especially into its earnings next week. Not going to add anything more just yet:

MASI reports earnings after the close today. I think they will report a strong Q with good guidance - they already released pre-lim numbers. I will likely look to close most/all of my $130 strikes and may look to add some spec calls north of $150:

EHTH, CDLX, and WW had rough sessions yesterday along with most of the small-cap space. Still like these names but won't look to add anything just yet.

SPOT had a strong beat on sub growth and showed signs of nearing profitability. It is trading up into the $230s in the premarket. Think $250+ is possible so may look to nibble some spec calls at the open:

Also still eyeing BURL and VKTX.

And this is what I am watching today: SPOT, MASI, SNOW, BURL, MASI, VKTX, AI, RBLX, U, ROKU. ALGN, CDLX, FVRR, TRIP, ADBE, IBM, NFLX, TSLA, STAA, W, YOU, ALT, TWLO, ISRG, MASI, GPCR, STAA, BIIB, GILD, AMLX, RDFN, ALGN, Z, AI, TRUP, ULTA, RBLX, TGT, AVAV, EXAS, AAPL SQ, LRCX, LULU, LLY, and NVO.

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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