Stocks started the week in the red, with the S&P closing down .61% on Monday. Asia markets closed mixed overnight while Europe stocks are mostly lower this morning. U.S. futures are pointing to a mixed open while the Dollar, Yields, Oil, and Gold are all higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-194/
Stocks fell for the second straight session on the heels of that surprisingly strong jobs report on Friday. Today we get a Powell speech in the afternoon and earnings season rolls on. Powell just had his press conference last week after the Fed raised rates .25%, so it is hard for me to think any of his comments will be market moving, but certainly something to be aware of. Markets tried to reverse losses yesterday but couldn't find a bid in a choppy trade. Maybe another day of consolidation today before the next leg higher.If there is any serious weakness, would want to see that $400 handle hold on the SPY:
The AI FOMO rolls on, with AI soaring over $30 yesterday while other names in the space rallied... ie. VERI. Add BIDU to the list as they announced they are nearing a release of a product similar to ChatGPT. For what it is worth, BIDU has been hyping itself as any AI company for quite a few years now. I always thought it was a way of distracting investors but now maybe something to watch. At some point AI is going to see some profit taking. I did not want to lose my profits so closed the last of my March calls out for over 300%. I also added VERI, which is another AI name that I think has more upside in the coming weeks. And of course, still holding YEXT as I think that will get some FOMO at some point. I may re-enter AI today on strength or if it falls and holds $24.
ICPT rallied another 8% yesterday, breaking the $20 handle for the first time since last summer. I used the move to close some of my March calls for 200% and 300%. I will hold the rest of my March strikes and may look for some later dated calls to play for a move into the $30s(and beyond):
ZYME is setting up nicely again and think a move into the mid-teen is possible soon. Still holding my freebie Feb calls and may look for some March and/or beyond strikes for that move:
As mentioned on yesterday watch list, still eyeing some AYX calls for their earnings Thursday. Premiums are expensive so may just wait until after they report if the premiums do not come down:
Normally I would have CMG on watch into earnings for some calls but the stock has soared over $300 to start the year. Will see how their earnings are after the close and may look to trade it after the open tomorrow:
Let's have a great day!
Here is what I am watching today: VERI, BIDU, AYX, AI, YEXT, RBLX, ROKU, 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!