Futures are pointing to a red start the week, with the S&P set to open .80% lower open as I write this, on the heels of a week that saw the S&P gain 2.48%. Asia markets closed mostly lower overnight while Europe indexes are in the red this morning. The Dollar, Oil, and Gold are lower while Yields are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-188/
To say this is a big week for markets would be an understatement. We have the Fed on Wednesdays and a slew of earnings including 4 of the biggest companies on the planet. The month of January and start of 2023 has been a good one so far, this week will go a long way in determining if it was a start of the year bounce, or a move off the bottom like 2009:
I am cautiously optimistic. I don't think we will have rallies like we did in March 2009 or off the Covid lows in March 2020, but I do think there will be playable bounces. As along as AAPL, AMZN, GOOGL, and META don't disappoint and the Fed does not surprise. The Golden Cross is in full effect on the SPY. Think a move over $410 comes this week after we churn today and possibly tomorrow:
I added FVRR calls on Friday as mentioned on the watchlist. The stock soared over 7% and I was able to close some of my calls for over 100%. The company reports earnings after Feb expiry so may look to close the last of my calls this week and look for some March strikes. Think this one can break into the $40s and beyond in the coming weeks:
AI was up over 31% last week. In hindsight I wish I had held my $15 strikes, which were up 2,000% at times on Friday, but I still did well. I was able to lock in my Feb strikes for some nice gains, including the last batch for over 600%. I also added March calls and locked some in for nearly 400%. Will be looking to add more strikes as I do think AI can remain on fire and trade north of $20 in the coming weeks:
AXSM received a price target upgrade this morning and looks poised to finally break into the mid-$70s and beyond. Still holding my Feb calls and may look for more strikes into March:
I added CDLX calls on Friday. CDLX is. a great story that was seriously impacted by Covid as most of its revenue relies on folks going to stores, traveling, and eating out at restaurants. Think this trades north of $10 in the coming weeks and may look for some more strikes to play for that move:
VRTX still setting top nicely here and think it is only a matter of time before it tests that $330 handle. Will look to close some of my calls out to cover costs when I get the chance and hold the rest:
Here are the implied moves for this week:
Names I will watch for possible risky lotto trades: ELF, DECK, PTON, and maybe GILD.
Here are the analyst changes of note for today:
Axalta Coating Systems (AXTA) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $40
Axalta Coating Systems (AXTA) upgraded to Buy from Neutral at Citigroup; tgt raised to $35.19
Eagle Bulk Shipping (EGLE) upgraded to Buy from Hold at Fearnley; tgt raised to $66
G1 Therapeutics (GTHX) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $10
Genco Shipping & Trading (GNK) upgraded to Buy from Hold at Fearnley; tgt raised to $22
Golden Ocean (GOGL) upgraded to Buy from Hold at Fearnley; tgt raised to $11.50
Okta (OKTA) upgraded to Buy from Hold at Stifel; tgt raised to $90
Regeneron Pharma (REGN) upgraded to Outperform from Market Perform at Cowen; tgt raised to $875
Shopify (SHOP) upgraded to Buy from Neutral at ROTH Capital; tgt raised to $56
And here is what I am watching today: PTON, GILD, AI, CDLX, AXSM, SAM, YEXT, IBM, SQ, ZYME, ICPT, SPOT, U, MASI, ROKU, NFLX, ALGN, GNRC, VKTX, UDMY, RARE, SAGE, and CMG.
Let's have a great day!
-JB