Stocks closed mixed on Tuesday, with the S&P finding some late day pressure to close slightly in the red, while the Dow squeezed out a gain. Asia markets closed mixed overnight, with some markets closed for the lunar New Year this week, while Europe indexes are in the red this morning. U.S. futures are pointing to a rough 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-185/
And a nice read from UPB on the current state of the market: https://www.optionmillionaires.com/a-2023-wednesday/
It was a choppy session on Tuesday, following Monday's rally. The S&P tried to close in the green but found some late day selling pressure. It was also filled with halts and odd trades right after the open, as stocks(mostly in the Dow) saw buys and sells way above the bid and ask. For example, $MA traded in a nearly $100 range between $332 and $430 in a matter of seconds. It looks like trades well outside the normal range at that time will be thrown out. After the close yesterday we had earnings from MSFT, ISRG, FFIV, and others. MSFT reported a mixed bag but the stock was being bid after the report as it seemed the results were better than feared. But then MSFT updated their guidance during the conference call and the stock gave back all of its gains and then some. ISRG reported a mixed quarter and is selling off this morning - thankful I passed on calls. Next week we get GOOGL, AMZN, and AAPL all on Feb 2nd, while META will report on Feb 1st. Feb 1st is also the date we get the Fed decision... will be a volatile week to say the least.
I have been watching this potential golden cross setup on the SPY. Think once that happens we will trade north of $410 but obviously today is not going to help. Would want to see that $396 handle hold today on the SPY and work back north of $400 into the end of the week:
TSLA, IBM, LRCX, LVS, NOW, and others report after the close today. IBM always interests me as a contrarian play but I will likely pass and wait until tomorrow. TSLA is nearly $40 off its lows in a short period of time and will need to have some decent numbers and updates just to hold those gains.
AI rallied out of the gate yesterday and I was able to close some of my calls for 60%. I also went and added some Feb strikes. Think this AI theme is only going to gain steam and will continue to watch for opportunities along with YEXT:
FVRR is a name I have watched over the years. It has bounced since the start of the year but think there could be more upside with a move to $45+ into Feb. They report earnings at the end of Feb so may look for some March strikes today:
AXSM is getting tight, only a matter of time before this embarks on a $15-20+ rally:
SQ, U, and ROKU all closed in the red yesterday. Still like all three for higher in the coming days.
And lastly, have my eyes on VRTX for a move back over $325:
Not going to be overly aggressive today and may look for a hedge using TZA calls if the SPY fails to hold that $396 handle.
And this is what I am watching today: VRTX, FVRR, IBM, YEXT, AI,, 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