Markets closed higher for the 3rd session in a row, with the S&P adding .23% in a choppy session - the Dow is now up 8 sessions in a row. Asia markets closed mostly lower overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a lower open, the Dollar is in the red while Yields, Oil, and Gold are all higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-289/
Stocks melted higher into the noon hour yesterday, before reversing all the gains and hitting lows at 2pm. Buyers then came in and were able to push indexes back into the green and near the highs into the close. It was an annoying chop session. This morning futures are lower after NFLX and TSLA earnings. I thought they both had great quarters though the headlines for Netflix would say otherwise, with a top-line miss and lower Q3 revenue guidance. More on NFLX below. Small-caps seem to be taking the baton, with the IWM set to open higher this morning. Think that will bode well for markets if some of the big-cap names take a bit of a breather and the small-caps, with many well off their highs, can start to get some bidders. $455.58 is the upper Bollinger Band on the SPY so could provide some resistance if we bounce this morning. If sellers come in, would want to see that $450 handle hold:
I thought NFLX posted a great quarter with a huge beat on sub adds. The stock has been on a monster run, so chalking this pre-market move up to some profit taking. Think $500+ coming in the next few weeks so may look for some later dated strikes into August to play for that move. If it holds $450, I may also try some lotto strikes for a bounce to $470 or so:
FVRR rallied to $32.11 yesterday, almost testing the 200dma, before selling off to close nearly flat at $30.92. That $30.63 handle is key support so would want to see another close above that today and then I think that 200dma falls quick:
CALX reported a strong Q after the close yesterday, beating estimates and raising guidance. The stock is getting positive analyst commentary this morning. May look at some August strikes today to play for that $60+ move:
IBM reported a mix bag of earnings after the close, beating on EPS but missing on revenues while also reiterating their FY guidance. The stock is slightly lower in the pre-market in a lackluster after hours session. I closed more of my calls out right before the close for over 100% and held a few into today. Still have time, as they are August strikes, but they will take a hit at the open. No plans to add any more calls but do think the stock may find footing after the morning dip and start working its way to $140 in the coming weeks:
And lastly, will be looking at some possible spec/lotto calls into tomorrow in names like SPOT, ALGN, ULTA, and CMG.
And this is what I am watching today: CALX, CMG, ULTA, SSYS, ROKU, TREE, BLK, SPOT, TNDM, YOU, Z, FVRR, GLL, GLD, ISRG, BJ, ALGN, ANET, IBM, DPZ, YEXT, AMD, LRCX, MU, NFLX, QQQ, AXSM, and SAGE.
Let's have a great day!
-JB