Markets closed mostly higher on Thursday, with the S&P adding .45% while the Nasdaq closed flat. Asia market closed mixed overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a higher open as I write this, the Dollar and Gold are lower while Yields and Oil are higher.
It was a bumpy session on Thursday, with stocks trading into the green after the open, only to find afternoon pressure to fall to lows at 2pm. Stocks were able to muster a bounce and push the SPY to a solid close. The S&P is now up 1.13% for the week. Today is the end of the Month. Quarter, and First-half. Will likely see some re-positioning causing some abnormal volatility in some names, especially near the end of the day. This 1st half is one for the record books, with the Nasdaq up over 30% and having its best half of all time. Of course the bears will cite the lack of breadth - meaning a few mega cap names are distorting the market. I wonder what they would be saying if it was reverse... probably find a way to spin it negative regardless. The SPY is looking to make it 4 straight days of gains and a test of that $440 handle this morning. Would be a great sign heading into the weekend if we can hold above that handle - especially considering the Fed pretty much said more rate hikes are coming:
I sat on my hands yesterday although still eyeing some positions:
CALX closed up 3% yesterday. As mentioned, think this is a great under-the-radar trade on the $42 billion BEAD program. More broadband customers = more revenue opportunities for CALX = higher growth/profit. I may actually look at some further out strikes today and will also look to close some of my July calls to cover costs when they are over 100%. Wouldn't be surprised at all to see it trade over $60 in July:
CMG retested Wednesdays highs before churning around the $2110 area. Still holding a few $2125s and my $2150s. Will need a big move for the latter. Think another $100 or so to the upside is coming but the premiums on next weeks strikes make it tough on a risk/reward basis, so will revisit on Monday:
SSYS closed up 2% yesterday but the option premiums soared. My July strikes are nearly up 100% now. This morning SSYS spurned both buyout offers from DDD and NNDM for $20 and $20.25 respectively. Still think SSYS is going to trade north of $20 soon but will look to lock some of my calls in today for 100% to cover costs and ride the rest:
IBM resumed its bounce after taking a breather on Wednesday. The stock closed at $134.05 and looks set to retest that $140 handle in the coming weeks. Will be looking to take a few more calls off to cover costs and hold the rest:
A rough session for Z, with the stock closing off over 4%. Not one to average down. If it shows signs of reversing today, may look to add more later dated strikes. Mid-$55s+ are coming soon:
FVRR is not making things easy, failing to hold Wednesdays gains. Will wait for $27+ before looking to add anything more:
A flat session for TRIP. Once that 50dma breaks $18+ comes quick:
And lastly. still have my eyes on ALGN:
Don't forget, markets are closed Tuesday for the 4th of July!
And here is what I am watching today: ALGN, 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