Markets rallied on Tuesday. with the S&P gaining 1.15%. Asia stocks rallied overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a lower open, the Dollar is higher while Yields, Oil, and Gold are all lower.
Markets opened at lows yesterday, then preceded to melt higher in a strong session that saw the S&P rally over 1%. This morning futures are trading lower, with reports that the U.S. may block AI chip exports to China weighing. After the close today we get MU earnings, and then Friday is the big day with PCE data(although from May) and it is the end of the Month, Quarter, and 1st Half. It was nice to finally see some market strength. Some follow-thru today and a hold of that $435 handle will likely set things up for another test of that $440 area in the next few days:
Z rallied over 3% after home sales #'s came in better than expected, another sign that the housing market maybe starting to recover despite what you ready everywhere. I used the move to close some more of my calls out for over 300% and added some later dated strikes. Will look to close the last of my weekly calls out today. A big breakout for Z yesterday which likely bodes well for more highs in the coming days/weeks:
IBM closed in the green for the second session in a row and looks primed for more gains in the coming days. I used the move to lock some of my calls in to cover some costs. Will look to take more off today and ride the rest free for the eventual re-test of that $140 handle:
I added some CMG calls late in the day yesterday, as it started showing signs of possibly breaking out of its 2 month trading range. Will use the $2050 area as a potential stop on weakness:
WING rallied over 3% yesterday after an upgrade. Once that 50dma breaks at $197.78, should be blue skies into the low $200s and then all-time highs:
VKTX and TERN have been absolutely punished the past few session after data this weekend from LLY showing their weight loss pill may remove the need for NASH. MDGL also has been punished. Some analysts are still bullish these names as they think it is too early to make that argument, but the market has spoken... for now. Tough to get bullish the names just yet so I will wait for the dust to settle before trying to add more calls:
Finally some green for FVRR, as it put to end a 6 session losing streak. It closed off the highs and put in a doji candle, which could be the start of a reversal. Will need a green session today for confirmation:
SSYS closed up over 6% yesterday after receiving higher buyout bids from SSYS and NNDM. They said they will respond within 10 days. I think they will spurn both offers. All this attention can only bode well for SSYS and think it trades into the $20s in the coming weeks:
GOLD continues to struggle, trading lower yesterday and it is down .40% in the pre-market. It is getting close to its next support at $1910. Once that breaks $1850 or so is next:
CALX, one of my top 5 stocks for 2023, could be a nice 'under-the-radar' play on the $42+ billion broadband plan just announced. CALX provides backend support for networks(and other things). Have to think the market will start pricing in better than expect results. Not to mention, the stock has been struggling in 2023. May add some later dated calls today:
And lastly, still eyeing some ALGN calls for the potential gap-fill:
And here is what I am watching today: CALX, ALGN, IBM, CMG, Z, SPOT, ULTA, BIDU, VKTX, 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