Markets rallied on Wednesday, with the S&P adding .74% after cooler than expected CPI numbers. Asia markets soared overnight while Europe indexes are in the green 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-285/
It was a strong session for stocks yesterday after weaker than expected CPI data, putting higher probabilities that the Fed will raise rates just one more time this year and then pause - at least that is what the CME Fed Watch tool says:
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
This morning the PPI data also came in below expectations. As much as I want to see markets rally, I hate to see it get too overextended. WOuldn't be surprised to see a pull back into the $445s at some point and then a push back to $446 or so:
I added some TREE calls yesterday. It is a name I have traded quite a bit in the past. The stock used to trade above $400 but has been decimated the past two years due to competitive concerns, their debt, and rising rates. The company recently hired a former Google exec and paid down a large portion of their debt. Think the stock will bounce into the mid-high $30s in the coming week or two:
Also a good sign it closed above its 200dma for the first time since March:
May look to add some August strikes as well today.
I also added some TNDM calls yesterday. The companies new Mobi pump was approved by the FDA on Tuesday and should help accelerate revenues into 2024. The market is forward looking, so would have to think it gets bid up before that happens. Not to mention it is near 52 week lows. May look at some August strikes on this one as well:
4 straight sessions of gains for TRIP. I posted yesterday, how the stock has under-formed the travel sector to the tune of 35%+:
Think $18+ comes today or tomorrow then the $20 handle in the coming week or two. May look to add more strikes today:
I locked more EXAS calls in for nearly 300% yesterday. EXAS is not the fastest mover and did not want to lose any profits. Still holding some $100s and may look for some further out strikes to play for the eventual move into the triple digits:
Z also rallied yesterday, testing $54.44 before pulling back. I was able to close some of my calls out for over 100% and will hold the rest. Think $55+ soon and likely higher:
SSYS received another revised buyout offer:
SSYS is gapping into the $20s this morning. Have to think it keeps going and I would guess this offer will be spurned from SSYS as well. May continue to look to add some later dated strikes:
Still eyeing YOU, TITN, ALGN, and others today.
And here is what I am watching: TREE, TNDM, YOU, Z, FVRR, SSYS, ROKU, CALX, GLL. GLD, SPOT, ISRG, BJ, ALGN, ANET, IBM, CMG, ULTA, DPZ, YEXT, AMD, LRCX, MU, NFLX, QQQ, ZYME, AXSM, SAGE, RARE, SRPT, and BLK.
Let's have a great day!
-JB