January 26th, 2024 Watch List

Stocks powered higher on Thursday, with the S&P adding .53% and the Dow rallying .64% after IBM's best market performance in years. Asia stocks closed mostly lower overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a lower open, the Dollar and Oil are lower while Yields and Gold are higher.

And here is my Rant from yesterday if you missed: https://www.optionmillionaires.com/jb-afternoon-rant-january-25th-2024/

And this is what UPB is reading this morning:

Markets gapped higher after the open yesterday, on the heels of a stronger than expected Q4 GDP report. Markets were expecting 2% GDP growth, it came in at 3.3%, so they were wrong to the tune of over 60%. This morning PCE data came in exactly inline. Hopefully enough to get some buyers in today for a possible $490 test on the SPY. Weighing on futures this morning is INTC earnings yesterday, which offered some rough guidance. With earnings season really picking up steam next week, it has some folks thinking more surprises maybe on the way. The SPY came down to that $485 handle in the afternoon before staging the late day rally. Would think that would be support today on any weakness, with that $490 tap possible:

SPOT chopped around for most of the day before a last minute surge pushed it to highs and a near 2%+ close. As I mentioned on my rant, still like this into next week with the Apple App stores news being part of the catalyst. Nice read on it here:

https://www.reuters.com/technology/apple-allow-downloads-outside-app-store-eu-with-new-fees-2024-01-25/

May look to add more calls into next week for the move to $230+:

I finally re-entered BURL calls. As I have been mentioning, the bollinger bands are extremely tight on the daily chart...meaning there is a tug-of-war that will eventually resolve with an outsized move. May look for some $210 strikes today on strength while also looking to close some of my $200s out:

YOU traded all the way up to $20.44 yesterday morning before giving back the gains to close slightly in the green. Think $23+ is coming. Some of my thoughts I shared:

Will look to close some of my calls out on the way up and hold the rest:

What a horrible start to the year for $WW. The stock is off nearly 50% with the only true catalyst being the LLY news of a direct to consumer program for their weight-loss drug and a new website. Still think the story has not changed, at the same time it is tough to catch a falling knife. The debt issue is a huge overhang and gives investors pause. May need earnings around the first week of March to get things going again. Still watching but patiently waiting to add any more strikes. FWIW, I was adding GME calls in the fall and Winter of 2020 with Oct and Dec strikes, only to see it go on that epic squeeze in January. Not saying the same thing happens here, just means I will continue to be patient as long as I believe in the story:

Looks like another red open for BIDU - will need a monster reversal here for the rest of my calls. As much as I think it heads north of $120 in the coming week or two, think there are better names out here to trade so will likely not add anything more just yet:

VKTX tried, but failed to close above that $22 handle. Still eyeing some more strikes but will be patient here:

MASI had a decent session yesterday and is still knocking at the door of the 200dma break. Once it does, that $130 handle should come quickly:

May look at some lotto calls today in names like ROKU, ADBE, IBM, TSLA and NFLX.

And here is what I am watching today: VKTX, BURL, SPOT, ROKU, ADBE, IBM, NFLX, VKTX, TSLA, STAA, W, YOU, ALT, SPOT, NFLX, TWLO, ISRG, MASI, GPCR, STAA, FVRR, ROKU, SPOT, 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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