Markets closed higher to start the week, with the S&P adding .40% while the Dow rallied .52% and in the green for the 11th session in a row. Asia markets soared overnight on China stimulus news while Europe indexes are mixed this morning. U.S. futures are pointing to a higher open, the Dollar, Yields, and Oil are higher while Gold is lower.
And a nice read from UPB: https://www.optionmillionaires.com/money-supply/
And this is what UPB Is reading this morning : https://www.optionmillionaires.com/morning-reads-291/
Markets closed higher yesterday in a bumpy session ahead of some big potential catalysts... ie. mega-cap earnings, the Fed, GDP, and PCE data. After the close today we get earnings from GOOGL, MSFT, V, and SNAP amongst the 58 companies reporting in the afternoon. Decent Q's by MSFT and GOOGL should help keep the market well bid, and of course, need to watch SNAP for revenues as big misses from the company in the past has weighed on the market due to advertising concerns(slowdown in spend). The SPY traded in a somewhat tight range between $452.30 and $455.04. Some more churn today will likely bode well for more highs into the end of the week as long as their are no big surprises:
CVGW saw a spike in volume at 1pm yesterday, out-of-the-blue, rallying from $36.50 to $37.50 and held the gains to close at $37.66. Didn't see any news and thought maybe it was more CEO purchases. No filing this morning so maybe he is looking to add more before putting in the form 4. My calls are now up 100% and I will likely look to take some off today to cover costs and hold the rest. Think $40+ comes soon:
TNDM rallied in the morning to nearly test $35, before pulling back to close at $33.75 and up over 2%. I will likely hold the rest of my freebie calls this week into earnings next week:
I was eyeing some SPOT calls for earnings yesterday but thankfully passed with the calls being too expensive on a risk/reward basis. This morning SPOT posted a huge sub beat but also posted a wider loss than expected due to their cost cutting measures they took(the irony). SPOT has never been an earnings story, the companies plan from the get go was to grow scale, content and subscribers first and the profit will come. The stock is gapping lower this morning. Think it can be a nice bounce play if it holds $150. May look to add some lotto calls for a bounce into the mid-$160s:
Don't look now but here goes WW again. At some point folks will start to realize that WW will be the 'drug dealer' for weight loss pills. The company trades 2/3rd x's revenues, and sports a 14% short interest. One of these moves for WW will be outsized. Call me crazy, but I think $15+ could happen. I make look to add some Sept calls. Obviously the risk is there as there are folks who think WW is a zero...
BIDU and other China ADR's rallied yesterday on news that China was implementing measures to 'optimize the business environment' amongst other things. BIDU looks interesting here as a potential play for a move past $160 later this week. Not to mention, this one has the #AI spin:
A monster beat and raise from SHW this morning., Would not be surprised to see it trade up to $290+. Will be watching for potential calls:
And still eyeing INMD, CMG, and ALGN for possible entries as outlined on yesterdays watchlist.
And this is what I am watching today: SHW, BIDU, WW, SPOT, INMD, ALGN, CMG, ISRG, YOU, FVRR, ANET, ULTA, SSYS, ROKU, TREE, BLK, TNDM, Z, ANET, IBM, NFLX, QQQ, AXSM, and SAGE.
Let's have a great day!
-JB