Markets rallied for the 4th straight session on Tuesday, with the S&P adding .69% with a cooler than expected CPI number being the catalyst. Asia markets closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a flat open, the Dollar and Yields are lower while Oil and Gold are higher.
Markets gapped higher at the open yesterday, after cooler than expected CPI numbers. Every attempt to reverse the gains was met with buyers and stocks closed right near the highs of the session. Today we get the Fed statement and presser. A rate hike would be a surprise and markets will be under pressure. No hike and dovish commentary and stocks should find a bid. Any hawkish spin by the Fed and no hike will likely pressure stocks as well. The S&P is up four sessions in a row and at 52 weeks highs, while also closing right at its upper Bollinger band. Of course I would like to see a rally today, but some consolidation would be welcome. If there is any major weakness, that $433.88 level would be key support:
It was another great session for FVRR, closing up 5.6%. I was able to close more of my June calls out for over 100% and will start looking to close a few July strikes out as well. The more I look at the company, - its earnings, fundamental, ect. - the more I think it is headed above $40 in the coming weeks. The company posted a phenomenal quarter with a beat and raise, margins are soaring, and they are now profitable. I think concerns that AI will negatively impact their business is overblown. It will negatively impact some folks, like writers... ect. But on the flip side, folks will be searching for people to help them utilize AI, and FVRR will see a huge demand for that.
May look for some further out strikes today:
BIDU rallied over 6% yesterday and I used the move to close more of my calls out for over 100%. Think $160+ is coming within the next few weeks as BIDU rides the AI hype and China looks to simulate its economy thru accommodative measures. Will look to close the last of my June calls today and look for later dated strikes to play for that move:
It was another red day for VKTX while TERN closed up nearly 2%. Still love them both for higher in the coming days and weeks:
VKTX:
EDIT soared yesterday after an analyst upgrade. Will need continuation today for my calls to come back to life. May look for some July strikes today as I think the stock trades into the mid-teens in the coming weeks:
Make it 12 sessions in a row of green for ROKU, with the stock closing up another 2% yesterday. $76 is a big spot, if it clears that, think $80+ this week:
MDGL is back on watch here. The stock has churned for the past few weeks. One of these mornings there will be buyout news or some other major catalyst. May look to add some calls to play for a move back over $300 in the coming weeks:
Likely will not be overly aggressive today ahead of the Fed.
And this is what I am watching today: BIDU, MDGL, ROKU, EDIT, FVRR, WING, SSYS, CMG, DPZ, ROKU, YEXT, SAM, AI, GLD, AMD, LRCX, MU, NFLX, GLL, TERN, QQQ, ZYME, SPOT, AXSM, SAGE, RARE, SRPT, BLK, EXAS, W, SHW, ABBV, and ALGN
Let's have a great DAY!
-JB