It was a rough session for stocks on Thursday, with the S&P falling .79%. Asia markets closed lower overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a lower open, the Dollar is in the red while Oil, Yields, and Gold are all higher.
It was an ugly session yesterday, with the S&P gapping lower at the open, trading off over 1% by 11am, before finding some support to close down .78%. There was not much in the way of catalysts outside of China's weak data overnight, so can chalk most of this up to some profit taking after the markets recent run. Two red days after a 5 session rally is not a bad thing, just not fun when I am holding calls. The June jobs report came out this morning and it was a mixed bag, with the unemployment rate coming in at 3.6% while non-farm payrolls came in lower than expected. Not sure that will change the path of the Fed at their meeting in a few weeks. Maybe some chop here into the open and then would want to see the SPY melt its way back over $440 into the close. Q2 earnings season kicks off at the end of next week - can imagine all the banter this weekend on how this will be the most important earnings season ever...
Another day brought another test of the $1910 handle on Gold. It has been very resilient, bouncing every time the level is breached. As I keep mentioning, think a waterfall moment is coming soon and one of these breaks of $1910 will not be met with buyers. May look to add some more GLD puts and/or GLL calls today for the eventual move to $1850:
Rough session for CALX, FVRR, TRIP, and Z. Nothing has changed and think all 4 will be back to new highs in the coming days:
CALX
TRIP:
Z:
FVRR:
If there is a silver lining to the pull-back the last few days, it is that I did not add any more positions. Today I may just look at some lotto trades in names like SPOT, CMG, and ALGN... ALGN likely my favorite as I think it trades back north of $340 today if the market finds some buyers:
And here 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