Stocks rallied on Monday, with the S&P adding 1.19% to start the week. Asia markets closed higher overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar is in the red while Oil, Yields, and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-184/
Markets rallied yesterday, despite all the negative headlines that have been coming lately, especially in regards to layoffs - seems every morning there is a new company cutting back on staff. Like I have been saying for the past few weeks, think a lot of this is baked in. The Fed has been painting this picture for a while. It was a strong day for the S&P with the SPY closing back over that $400 handle and a potential Golden-cross playing out. This morning markets are not cooperating. Would like to see a move back over that $400 handle today/tomorrow and see that Golden-cross pan out, which would likely lead to the SPY testing the $415+ area:
ChatGPT continues to get exposure and think it can only help bid up publicly traded names in the AI space. Names like $AI and $YEXT come front and center. I went and added some AI calls yesterday with the stock getting bid. May look for some later strikes as well on the name for a move into the $16+ area:
YEXT is a name that has struggled to execute over the past few years. It looks attractive here after its recent consolidation in the $6's. May look for some later dated calls to play for a move to $8+ in the coming weeks:
ROKU rallied over $55 yesterday before closing in the $54s, I was able to close some of my calls out to cover costs and held a few for the possible $60+ move. Will use the $50 handle as a possible stop:
SQ soared over 7%, finally closing back over $80. I used the move to lock in calls to cover costs and some profit. Think SQ can rally into Feb above $90 and possibly into triple digits:
It was a flat day for ISRG on Monday. I was looking to add some calls into their earning after the close today, but struggling to find any decent risk/reward strikes on the calls side. May pass today and look to add something tomorrow depending on their report:
Still eyeing names in the Biotech space.
And here is what I am watching today: AI, YEXT, ISRG, AXSM, SQ, ZYME, ICPT, SPOT, U, IBM, MASI, ROKU, NFLX, ALGN, EXAS, SPOT, GNRC, VKTX, UDMY, RARE, SAGE, and CMG.
Let's have a great day!
-JB