Markets closed lower on Thursday, with the S&P losing .29%, albeit well off the lows to the day. Asia markets finished in the red overnight while Europe indexes are green this morning. U.S. futures are pointing to a slightly higher open, the Dollar and Gold is higher while Yields and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-423/
Markets closed lower on Thursday after PPI data came in higher than expected, and that is on the heels of CPI data Tuesday that also came in a tad higher than expectations. The S&P is still up .63% on the week and some profit taking is to be expected. AI/Chips/Crypto continue to steal the headlines with NVDA leading the show. Expect more 'bubble' headlines over the weekend. At some point I thought Biotechs would take the baton. Still have plenty of time in 2024 but the IBB fell to nearly 2024 lows yesterday. Something to watch. The SPY tumbled yesterday to $511.82 right at 3:30 before a last 30 minute surge pushed the SPY back near $515 and almost into the green. One of these sessions there will be no bounce. If the SPY can't hold $512.50 today I will be looking at some spec puts and possibly some into next week. And just an FYI, supposedly $5 trillion in notional value of options expire today, the most in 3 years. Could create some swings today:
And small-caps took it on the chin yesterday, closing down nearly 2%. That 50dma at $198.27 a big spot:
TERN reported earnings after the close yesterday. With early stage Bio companies it is more about cash position and updates on studies then revenues, which are typically zero. TERN said they have enough cash until at least 2026... $283 mil. For what its worth the company has a $414 mil valuation. Oral data for their GLP-1 drug will be out in the 2h of 2024. Like I mentioned on yesterdays watchlist, this reminds me of VKTX back in the $7 and $8s. Will continue to look for opportunities to add more later dated calls:
MDGL received the first FDA approval for a NASH drug yesterday with zero black box warnings or requirements, a huge positive. Some were expecting folks to need biopsies before being allowed to use MDGL's NASH drug. A great sign for the space, especially for VKTX. Would have to think the approval just expedites M&A in the sector. May look to add more VKTX calls today:
AVGO and LRCX closed mostly flat yesterday. Will need a big move today for the rest of my puts.
And LRCX:
ADBE reported earnings after the close yesterday that bested estimates, but seems that the market was expecting much more and the stock is tumbling in the pre-market. Thankfully passed on the calls but may look at some spec calls for a bounce today. That $500 handle has been strong support for months, so if that holds in the morning may look for some lotto calls:
And this is what I am watching today: ADBE, LRCX, AVGO, BURL, VKTX, GPCR, TERN, NOW, SNOW, MDB, SE, ALT, EDIT, GPCR, ALT, AMD, MU, URI, Z, AXSM, WIX. DWAC, SPOT, ADBE, MASI, ALGN, STAA, W, YOU, ALT, TWLO, ISRG, STAA, BIIB, GILD, RDFN, Z, AI, TRUP, ULTA, RBLX, TGT, AVAV, EXAS, AAPL SQ, LRCX, LULU, LLY, and NVO.
Let's have a great day!
-JB