Markets rallied on Tuesday, with the S&P adding 1.29%, after comments from Powell were construed as somewhat dovish. Asia markets closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are in the red while Oil and Gold are in the green.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-195/
Markets chopped around on Tuesday, before embarking on a rally in the afternoon, after a speech by Powell was construed as somewhat dovish. After Monday's sell-off all the market pundits were calling for the next leg down, now it seems everyone has changed their tune. That Golden Cross on the SPY continues to play out. Like I have been saying for the last few weeks, think $420 or so is possible on the SPY and then will re-evaluate. Folks who didn't trade in 2008/2009 are making comparisons that we are in the same type of macro environment - insane to me. I mentioned last week, that at the March 2009, one could argue that the market could fall another 50%-75% and no-one would be surprised. It is different this time in my humble opinion - of course outside of any crazy black swan event. $420 looks like the next spot of resistance with $407 or so being support:
As mentioned on the last few watchlists, I finally added some AYX calls. They report earnings tomorrow after the close and think the chart is setting up for a move into the mid-60s into the report with the possibility of a move past $75 on a beat and raise. AYX can almost be construed as an AI play, as the company automates analytics for companies. My calls are already up almost 100% so will look to close some out to cover costs today and ride the rest:
ICPT soared another 5% yesterday, hitting multi-year highs. I went and added some more calls and will look to close the last of my $22.50s in the next day or two. Once I added the March calls, it looks like an algo or bot came in, with thousands of calls hitting the ask on the strike. Hopefully a sign of things to come:
ICPT longer view:
VKTX reports earnings after the close today and looks poised to break out from its recent consolidation. Any decent numbers and/or positive updates and the stock is $12+. Any big surprises and its $15+:
APPS reports after the close today. A name I have liked in the past. It posted great results last quarter and the stock soared over 60%. Don't think it will repeat that performance, but do think another solid report points to a great trend for APPS and the stock will trade into the $20s. May look at some lotto calls today:
Still love YEXT and VERI here and may look to re-enter AI on any strength today. This AI theme is not going away anytime soon.
And VERI:
And here is what I am watching today: APPS, AYX, VERI, 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!
-JB