Markets closed higher for the 4th session in a row on Thursday, with the S&P adding .85%. Asia markets closed mixed overnight while Europe stocks are flat this morning. U.S. futures are pointing to a slightly green open as I write this, the US Dollar and Yields are lower while Oil and Gold are higher.
It was another strong session yesterday, with the S&P closing right near $450 and at multi-year highs. Just last week the bears were out calling for the 'inevitable crash' - stocks closed lower for 3 days into the weekend - instead it was just another buying opportunity. Cooler than expected CPI and PPI numbers have provided some of the catalyst and now we get the start of the Q2 earnings season which has started off in strong fashion this morning. Both JPM and WFC posted stellar results, with JPM's showing the SVB asset acquisition just padding profits. Next week we get earnings from NFLX, TSLA, and many more so should be interesting. Not a fan of seeing the SPY over-extended, so would prefer to see some smaller moves. But if earnings come in strong next week, the SPY could continue to overshoot and eclipse that $460 handle... which would be pretty remarkable:
SSYS rallied again yesterday on news DDD raised their buyout offer to $24.05. The stock traded up to $21.71 in the morning only to find some sellers. I did not want to lose the rest of my profits so I closed the last of my July strikes out for over 700%. Think SSYS can trade north of $25 on its own merits so may look to add some August strikes today to play for that move:
CALX traded up over 2% yesterday so I used the move to close the last of my calls for nearly 300%. May look to add some spec calls today for earnings next week and a possible move to $60+:
Finally a strong showing for FVRR, closing up over 7% yesterday on no news. Well actually they did say they will report earnings on Aug 3rd. I went and added some August strikes yesterday to encompass earnings and will look to take some off to cover costs when I get the chance. So many reasons why I like the name:
Next target is $32.42:
I added some ROKU calls for next week. NFLX reports on Wednesday and think the stock can see some follow-thru into the $80s in the coming days(and likely higher):
TREE closed up another 3% yesterday. Think the positive bank earnings this morning will help keep the stock bid. Will look to close some calls out to cover costs and hold the rest into next week:
ULTA may be a nice spec/lotto trade today. May look at some $480 lotto's at the open:
And lastly, BLK reported a strong Q this morning but is being sold in the pre-market. It is up everyday this week and was $675 a week from today. If it trades into the $720s in the morning I may look at some spec calls for a bounce back to $740 or so:
And this is what I am watching today: BLK, SPOT, ULTA, ROKU, TREE, TNDM, YOU, Z, FVRR, SSYS, CALX, GLL. GLD, ISRG, BJ, ALGN, ANET, IBM, CMG, ULTA, DPZ, YEXT, AMD, LRCX, MU, NFLX, QQQ, AXSM, SAGE, RARE, SRPT, and BLK.
Let's have a great day!
-JB