July 29th, 2022 Watch List

Markets closed higher for the second session in a row, with the S&P adding 1.2%. Asia markets closed lower overnight while Europe indexes are in the green this morning. U.S. future are pointing to another higher open, the Dollar is lower while Yields, Oil, and Gold are all higher.

Stocks reversed morning losses yesterday to close right at the highs of the day. Seems like every post-fed day had seen stocks reverse the previous days gains so a good sign to say the least. After the close yesterday we had earnings from the last of the 5 mega-cap names to report - AAPL and AMZN. Both reported better than feared results and both are higher this morning. Not going to say the bottom is in but we could be in a nice tradable range between $400 and $425 or so for the foreseeable future. I'd be happy with a green close today which would set things up nicely for next week:

INMD gave back some of its pre-market gains after the open yesterday. I did not want to see my profits disappear, nor want to see the sellers take control, so I took the last of my calls off for 100%. Sure enough the stock embarks on a rally off the lows to close over $33. Not sure I will add anything but it it breaks $34 I may get interested in some $40 strikes for a move to $42.50 in the coming weeks:

CUTR remains a nice sympathy play off of INMD. They report earnings next week. Spreads are tough but may look at some $50 or $55 calls today for some premium build into their report:

ROKU reported disappointing earnings after the close yesterday, missing on all metrics and substantially lower guidance... shocking numbers. I'll probably stay away from this name until the next report:

AMLX closed up another 5% yesterday, holding that $25 handle to close at $26.30 and looks to be gapping this morning. Would not be surprised to see $30+ next week. Hopefully the premiums will start going into the calls and I can take some of my Oct strikes off to cover costs:

GWW reported a huge beat and raise this morning. Only monthly strikes on the name but may look at some calls to play for a move to $540+ in the coming weeks:

May look at some lotto SPOT calls today for a move over $217.50 or so:

BIIB also looks interesting here. May look at some $225 or so calls into next week:

CI traded up near $276 yesterday at the open, only to give the gains back and close at $273. Still holding the last of my $275s and may look to add some calls for next weeks earnings... likely $290 strikes:

NFLX, TWLO, and SNOW are all on watch as well.

Here are the analyst changes of note for today:

Apple remains Top Pick at Morgan Stanley after 'better than feared' report
Morgan Stanley analyst Erik Woodring said Apple's June quarter results were "better than feared," as iPhone and Services upside offset Mac and iPad supply constraints and a decline in Wearables. Management's September quarter guidance for revenues to be up a mid-single digits percentage year-over-year appears "rightfully conservative," said Woodring, who maintains Apple as his Top Pick with an unchanged $180 price target and Overweight rating
DexCom price target lowered to $105 from $131 at Oppenheimer 
Oppenheimer analyst Steven Lichtman lowered the firm's price target on DexCom to $105 from $131 and keeps an Outperform rating on the shares. Lichtman believes the post-earnings selloff is a buying opportunity, and tells investors in a research note that a software change is being made to the G7 based on FDA feedback, causing a slight U.S. launch delay, but that visibility on getting the change into the FDA "sounds good" as does the rest of the submission

O'Reilly Automotive price target raised to $770 from $700 at MKM Partners
MKM Partners analyst David Bellinger raised the firm's price target on O'Reilly Automotive to $770 from $700 and keeps a Buy rating on the shares after its Q2 results and guidance. The analyst is cutting his FY22 EPS view to $31.84 from $33.05 and FY23 view to $34.90 from $36.09 on weakening outlook toward DIY trends, but he still sees a "relatively solid" demand backdrop for the aftermarket auto parts space with or without further price inflation.

MasterCard price target raised to $440 from $420 at Truist
Truist analyst Andrew Jeffrey raised the firm's price target on MasterCard to $440 from $420 and keeps a Buy rating on the shares after its Q2 earnings beat. The company's market share gains are showing through and the stock is a core holding and "best FinTech" within his coverage, the analyst tells investors in a research note. Jeffrey remains positive on MasterCard's cross-border exposure, operating leverage, a fortress balance sheet, and superior management

LendingTree price target lowered to $80 from $130 at Truist
Truist analyst Youssef Squali lowered the firm's price target on LendingTree to $80 from $130 and keeps a Buy rating on the shares. The company's weak Q3 and FY22 outlook overshadow its better than expected Q2 results as rising rates are pressuring refi demand while inflation and tightening credit risk pressure Insurance, the analyst tells investors in a research note. All LendingTree segments are likely to face further macro headwinds in the second half of the year, Squali adds
Roku price target lowered to $130 from $170 at DA Davidson
DA Davidson analyst Tom Forte lowered the firm's price target on Roku to $130 from $170 and keeps a Buy rating on the shares after its Q2 earnings miss. The analyst states that he had wrongly expected Roku's ad sales to be insulated by the secular shift to over-the-top from linear TV as the company is facing significant near-term ad spending headwinds, an increasingly difficult and uncertain environment with recessionary fears, inflationary pressures, rising interest rates and ongoing supply chain issues

And here is what I am watching today: CI, BIIB, GWW, SPOT, AMLX, INMD, CUTR, TWLO, NFLX, CMG, and SAGE.

Let's have a great day!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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