Markets closed higher to start the week, with the S&P adding. .39%. Asia markets closed mostly lower overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a slightly lower open, the Dollar and Yields are in the red while Gold and Oil are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-287/
It was a nice start to the week, with stocks shaking off a red open to melt up all day and close at the highs of the session. This morning we got retail sales for June which came in lower than expected. Hate to see weak data but think that bodes well for the long-term and gives the Fed ammo to keep rates unchanged at the next meeting and on a path to start cutting them. Tomorrow we get earnings from NFLX, TSLA, IBM, and others. Will be the first big test for markets. The SPY closed at $450.88 and the upper Bollinger band is $451.13. Could see some chop today with $449 as support:
I finally added some YOU calls. They haven't announced their earnings date but the last two years(since IPO) they reported on Aug 15th, and Aug 16th. The August strikes expire on August 18th so hopeful they will announce their date for before then. The stock has been pummeled since their last report, despite a strong quarter. The company is growing top line over 45%, has over $770 mil in cash, no debt, issues a dividend, and has an active buyback program(mostly to offset compensation dilution). A great story that I compare to ROKU. Back when ROKU IPO'd people thought it was just a piece of hardware for a TV and never saw the other side, the monetization of the platform. With YOU, most folks who don't travel or haven't experienced the product don't understand what they do. I think eventually YOU will be incorporated into the TSA. Not only that, there are others uses for their technology like sporting events and concerts(and much more). Recently, they just announced the Chief Security Officer from Crowdstrike was added to the BOD. Another great sign. Like this for $30+ in the coming weeks once it breaks that 200dma at $26.48:
I also added some CVGW calls yesterday with the stock soaring on an insider buy:
https://www.sec.gov/Archives/edgar/data/1133470/000125085323000043/xslF345X05/primary_doc.xml
CVGW has fallen on hard times as of late, with revenues/profits declining. But think has has reached a trough and growth will return. It now trades nearly .5x's revenues. The insider buy was from the CEO who added over $2 mil in stock. Think $40+ comes soon. Will look to close some of my calls out to cover costs at 100% and ride the rest:
And longer view:
A strong session for FVRR yesterday, recouping Friday's losses. $30.63 is the big spot today. Once that breaks and holds $32+ comes quick:
Another day brings another raised bid for SSYS:
Was looking to add some calls yesterday but passed. Have to think it will put more pressure on DDD to up their bid, or at the least, keep SSYS stock running. $25+ should come soon enough so may look to add some Aug strikes to play for that move:
Of course the chatter now around retailers is that resuming payments on Student loans is going to weigh. A great narrative and spin. Would have to think if that was the case, it would also cut into causal dining sales and every other place that depends on discretionary income. Either way, still watching ULTA for a possible move to $500 in the coming weeks. They will report earnings the last week or so of August:
And lastly, still eyeing some CALX calls ahead of their earnings tomorrow. They also received a positive analyst note this morning:
Think $60+ on any positive report but of course, risk is there for a miss and the stock to fall:
And here is what I am watching today: ULTA, SSYS, ROKU, TREE, CALX, BLK, SPOT, TNDM, YOU, Z, FVRR, GLL, GLD, ISRG, BJ, ALGN, ANET, IBM, CMG, DPZ, YEXT, AMD, LRCX, MU, NFLX, QQQ, AXSM, and SAGE.
Let's have a great day!
-JB