Markets closed lower to start the week with the S&P losing .45%. Asia markets rallied overnight while Europe indexes are mostly in the red this morning. U.S. futures are pointing to a slightly higher open, the Dollar, Yields, and Oil are lower while Gold is in the green.
Stocks traded higher in the morning yesterday, only to melt lower into the afternoon to close at lows for the second session in a row. There continues to be a lack of catalysts outside of PCE data Friday so likely some more churn today. If sellers come in like yesterday, would want to see that $429.50 or so area hold:
Z rallied 2.56% yesterday and I used the move to close some of my Z calls out for 100%. If it can break and hold $50 today, think mid-$50s come quick and will look to add some later dated strikes:
I added some IBM calls as outlined on yesterdays watch list. My timing could have been better, as the stock reversed a solid red open and closed up 1.48%. That 200dma looks like support here so will likely use the $130.20 area as a stop if there is weakness today - thought I do think $134+ is in the cards next:
WING received an upgrade today:
The stock is gapping higher in the pre-market. Hopefully the kick it needs to get back over that $200 handle. There is also a potential bullish crossover setting up on the MACD - ie. bullish momentum. If the stock breaks above $195 I may look at some $220 calls:
DDD updated their buyout offer to bring it back up to $20 and SSYS is gapping this morning. Then NNDM upped their buyout offer to $20.05. One of these offers will spark the shares much higher:
It is trading north of $18 as I write this. If this holds, have to think it will trade above $20 in the coming days:
Another rough day for TERN and VKTX as folks took some positive data from LLY (and negative news from PFE) as a reason to sell:
Lilly weight loss drug shows potential best-in-class profile, says JPMorgan - JPMorgan analyst Chris Schott says Eli Lilly's Phase 2 retatrutide data suggest a potential best-in-class weight loss profile for the drug. In the study, retatrutide showed a 24% weight loss in the 48-week treatment period and had not plateaued, suggesting potential peak weight loss in the upper 20%s, the analyst tells investors in a research note. The firm says the efficacy could have been higher if the study population had consisted of a higher proportion of women. JPMorgan sees Eli Lilly as positioned to address a full spectrum of type 2 diabetes and obesity patients with the overall incretin market largely remaining a duopoly. It keeps an Overweight rating on the shares.
VKTX and TERN are still in the early stages so makes them easy short targets. At the same time all this hype makes these early stage/small-cap bios attractive M&A targets. Even Chamath is getting into the weight-loss hype(not a fan of him BTW but he is a good writer ) :
After the close TERN announced some positive news on their weight loss drug:
And Mizuho is out this morning reiterating their Buy rating and $16 PT. If it can reclaim $10, I will be looking for some more calls:
It was also another rough day for FVRR. The stock closed lower for the 6th session in a row and broke into new 52 week lows. Just like the AI hype has pushed up AI names, it has had the reverse effect on those who are expected to be disrupted... I just disagree that FVRR is one of them. Almost a triple-bottom here so a key session today to see if the buyers can finally come in and the sellers are done:
CMG is still tight and nearing its 50dma for the first time since March. Still eyeing calls for that potential tug-of-war resolving to the upside:
And lastly, ALGN looks interesting this week as a potential gap fill play. May look at some $350 or so spec calls on any strength this morning:
And this is what I am watching today: ALGN, TERN, IBM, CMG, Z, SPOT, ULTA, BIDU, VKTX, ISRG, ROKU, MDGL, DPZ, YEXT, SAM, AMD, LRCX, MU, NFLX, QQQ, ZYME, AXSM, SAGE, RARE, SRPT, BLK, EXAS, and W.
Let's have a great day!
-JB