Markets closed mixed on Tuesday, with the Nasdaq squeezing out a gain while the Dow tumbled over 1%. Asia markets rallied overnight while Europe indexes are mixed this morning., U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-180/
Markets opened higher yesterday, only to immediately come under pressure and then chopped around for the rest of the day. It was a 'sit on the hands' kind of day. This morning we got the December PPI numbers which came in below exceptions - a good sign - and at yearly lows. Hopefully this is not a sell the news event. If stocks can hold their gains, think $400+ close on the SPY comes and maybe $410 or so into the end of the week with NFLX earnings tomorrow being the next possible catalyst:
RBLX gapped higher yesterday on their December metrics release and finished the session up over 11%. This is on a crash course with the $40s in the coming days and likely higher. They should be announcing their earnings date any day now, and it will likely be in the second week of Feb. Will look to close some of my Feb strikes out at 100% when I get the chance and possibly hold the rest into earnings:
U closed up another 2%. Still like this one for a multi-day breakout:
AXSM tried to breakout yesterday but reversed gains to close up only 1.3%. If it can hold the 50dma today, think a move into the $70s and beyond is coming:
ZYME posted a strong late-session rally to close nearly flat at $10. Only a matter of time before it works its way into the $11s and beyond:
ROKU has closed in the green for 9 straight sessions and higher in 11 of the past 12 sessions. The move has been slow and methodical, which could bode well for more upside into/after NFLX earnings. May look at some calls today:
Outside of that, I am holding a bit more risk than I typically do, so will likely be a bit conservative today in regards to trades.
Here are the analyst changes of note for today:
GoDaddy (GDDY) upgraded to Outperform from In-line at Evercore ISI; tgt raised to $103
Lightspeed (LSPD) upgraded to Outperform from Neutral at SMBC Nikko; tgt $21
Marqeta (MQ) upgraded to Neutral from Underperform at SMBC Nikko; tgt $8
IBM (IBM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $148
Levi Strauss (LEVI) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $17
YETI Holdings (YETI) downgraded to Market Perform from Outperform at Cowen; tgt $47
And here is what I am watching today: ROKU, ALGN, U, RBLX. AXSM, EXAS, MASI, UDMY, NFLX, SQ., CME, ICE, BLK, SPOT, GNRC, VKTX, UDMY, RARE, SAGE,, IBM, and CMG.
Let's have a great day!
-JB