Markets closed lower on Wednesday, with the S&P losing .20% in a choppy session. Asia markets tumbled overnight while Europe indexes are falling this morning with the DAX off over 1.2% as I write this. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-281/
The S&P ended its 5 session winning streak yesterday, closing in the red in a choppy/premium crush session. Seemed like names that rallied on Monday gave those gains all back yesterday. The Fed minutes came out as expected, with more rate hikes on the way - likely at this months meeting. I think one more hike of .25% and then expectations of no hikes and a possible cut rise for the end of the year. This mornings ADP report came in much hotter than expected. Tomorrow we get the June jobs reports and then Q2 earnings season kicks off next week. Of course I don't like to see the market pull-back, but do think it bodes well for more gains in the coming weeks. The SPY is nearing that $440 handle in the pre-market. Would want to see that hold today and then a rally into the weekend:
Gold is pulling back this morning after the stronger the expected ADP report. That $1900 handle is the key spot, then think there will be some type of waterfall action to $1850 or so. May look to add more GLD puts today:
Another somewhat flat session for CALX. Premiums are holding up, which is a good thing, but hopefully can break and hold $50 today and start working its way up to that 200dma at $56.77 before earnings:
TRIP closed off over 2% - the entire travel sector was beaten up yesterday. TRIP has underperformed compared to its peers in the travel space in 2023... The stock is down for the year while names like EXPE, BKNG and others are up double digits. I'll have a post up later but continue to like TRIP thru the summer:
Z also had a rough session,. giving back all of the previous sessions gains. Still like Z for a move to $55+ in the coming week or two and may look to add more strikes:
FVRR also gave back most of Monday's gains. Wold want to see it hold $26 today our fear the bounce to the 50dma will be negated:
Will continue to keep things small this week during this chop/consolidation - which is not good for premiums. If I do add anything, it will like be in BJ, ALGN, or ANET.
And this is what I am watching today: BJ, ALGN, ANET, CALX, FVRR, IBM, CMG, Z, SPOT, ULTA, ISRG, ROKU, MDGL, DPZ, YEXT, AMD, LRCX, MU, NFLX, QQQ, ZYME, AXSM, SAGE, RARE, SRPT, BLK, and EXAS.
Let's have a great day!
-JB