Another wild session for markets on Wednesday, with the GME squeeze inciting massive moves in other highly shorted names... the likes we have not seen in sometime(or possibly ever). Despite the huge upside moves in some small-cap names, the larger cap stocks found pressure yesterday with the S&P dropping over 2.5%... its largest fall since October. Asia markets fell overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a green open, the Dollar, Yields, and Gold are higher while Oil is lower.
And this is what UPB is reading this morning: Thursday Morning Reads
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EHTH broke over that $88 handle, tested the $93 handle, before finding pressure late in the day. I locked some of my calls in for 100% as it rallied, then closed the rest for 200% as it sold off in the afternoon. I may revisit but premiums are expensive right now.
OTRK also rallied on Wednesday, and I closed more of my calls out for over 200%. I still hold a few for a possible break and rally over $100. If it fails to hold $90 today will likely close the last out and revisit.
The Fed statement and press conference was yesterday and typically Gold sees some swings the next day. I am also concerned that the market is going to be under pressure into the weekend. I was looking for a put position but premiums are quite expensive in many of the names. DUST looked interesting on a risk/reward basis so I added some speculative weekly calls. I may look for later dated strikes at some point as well:
This market action reminds me a bit of trading penny stocks back in the day. Everyone is trying to find the next runner. Who knows how long this lasts as folks take their GME/AMC profits and keep rolling into some other POS company. Karma is a bitch for the shorts, as I said yesterday. I have been hurt plenty of times by some hedge fund or person coming out with some short piece in a name I am in calls on. Most times their accusation are 100% bull-crap (like WIX , PTON, and many, many others). Hopefully this tempers some of that garbage.
Not my style to FOMO trade these names that are moving every hour. Not to mention options premiums can be tough - you get in high and stock moves higher and premiums are still the same, then it falls and you lose money. So I will be very selective today and tomorrow.
There is always another day and another trade.
Had to redo the watchlist this morning so apologies for the abridged version.
Here is what I am watching today: TZOO, LOCO, AXNX, NTR, DUST, GLD, TEAM, OKTA, TTD, and TWLO.
Let's have a GREAT DAY!
-JB