July 7th, 2022 Watch List

Stocks closed higher on Wednesday, with the S&P adding .40%, with most of the gains happening after the release of the Fed minutes at 2pm. Asia markets finished in the green overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a green open, the Dollar is lower while Yields, Oil, and Gold are all higher.

It was mostly a premium eroding session yesterday, with stocks chopping around until the release of the Fed minutes at 2pm. The minutes seemed slightly hawkish and was enough to push markets higher into the close. The odds of a .75% rate hike at their next meeting at the end of this month went up to 97%. Tech and momo names took breathers yesterday. Hopefully they can find more bids today and we can continue the rally into the weekend. That $390 spot on the SPY looks like the next target:

I have been watching the Biotech sector for weeks now for signs maybe a bottom is in. Some of these names have been absolutely crushed and trade at less than cash value. This morning the rumored MRK SGEN buyout looks imminent : https://www.wsj.com/articles/merck-is-in-advanced-talks-to-buy-seagen-11657160827?mod=pls_whats_news_us_business_f

Would like to start seeing more of these. The biotech sector has closed in the green 9 out of the past 12 sessions and the IBB chart is looking great. May actually look to get some IBB calls and also start looking to enter names like SAGE, VRTX, REGN, BTAI and possibly GBT:



U consolidated yesterday with the rest of the tech names. Still like this for a move over $43 and possibly to the $46 handle into tomorrow:

TWLO is also back on watch for a move over $100 in the coming week or two. May look at some spec calls into tomorrow as well as some later dated strikes:

Here are the analyst changes of note for today:

PPL Corp. upgraded to Outperform at Evercore ISI with re-rating expected
Evercore ISI analyst Durgesh Chopra upgraded PPL Corp. to Outperform from In Line with a price target of $30, down from $31. Following a restructuring, selling its UK business last June 14 and using part of the proceeds to acquire a Rhode Island based utility this May, he believes the shares should command a higher valuation than currently reflected in the stock and are "ripe for a re-rate," Chopra tells investors. With minimal regulatory risk until 2025, no equity issuance, and "a much simpler execution story," he expects PPL shares to benefit from incremental investor interest in a volatile market, the analyst added

Planet Fitness upgraded to Neutral from Underperform at Exane BNP Paribas
Exane BNP Paribas analyst Laurent Vasilescu upgraded Planet Fitness to Neutral from Underperform with a $75 price target
Denso upgraded to Buy from Hold at Jefferies
Jefferies analyst Takaki Nakanishi upgraded Denso to Buy from Hold with a price target of 9,000 yen, up from 8,700 yen, as he has revised the preference order of the two OE Suppliers firms under his coverage to rank Denso ahead of Aisin. Suppliers are likely to report weak Q1 earnings, but this should be an important turning point to more upbeat performance, Nakanishi contends.
Ollie's Bargain Outlet price target raised to $75 from $70 at Wells Fargo
Wells Fargo analyst Edward Kelly raised the firm's price target on Ollie's Bargain Outlet to $75 from $70 and keeps an Overweight rating on the shares. Ollie's Bargain Outlet seems to have become more of a consensus long following recent strong performance, but the analyst continues to see room for potential upside and remains bullish. His most recent analysis of the advertising flyer continues to support his positive thesis, as the company's solid 40-year celebration flyer builds on what looks to have been a good promotional quarter to date
Microsoft price target lowered to $330 from $373 at KeyBanc
KeyBanc analyst Michael Turits lowered the firm's price target on Microsoft to $330 from $373 and keeps an Overweight rating on the shares. The analyst is also lowering estimates given Q2 FX declines and recent reductions to 2022 PC shipment outlooks. He will look to channel checks later this month for broader demand trends and to Gartner/IDC upcoming 2Q22 PC shipments estimates ahead of Q4 results
UiPath assumed with a Buy at Canaccord
Canaccord analyst Kingsley Crane assumed coverage of UiPath with a Buy rating and $25 price target. He is bullish on UiPath's ability to leverage automation in a broad set of use cases and expects partners, like EY and PwC, to give it "critical sales leverage," Crane tells investors

And here is what I am watching today: IBB, REGN, BIIB, VRTX, U, TWLO, SPOT, BPT, TNDM, GLD, DUST, and SRPT.

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.

More Posts by JB: View All | Private Twitter Feed: Access Now! (For Diamond Members)