Markets soared on Thursday, with the S&P adding over 1.7% while the Nasdaq rallied over 2.4%. Asia stocks closed in the green overnight while Europe indexes are in the red this morning, reversing early morning gains. U.S. futures are pointing to a lower open, the Dollar and. Yields are in the red while Oil and Gold are higher.
And this is way UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-219/
Stocks rallied on Thursday, as contagion fears waned and prospects for a more dovish Fed increased. The letters 'QE' are now back in the headlines. Who knows what is going to happen at next week's Fed meeting, but have to think the tone has shifted. They have been trying to put the US economy into a recession, not cause a banking failure. The SPY is now solidly back over its 200dma. A stretch to think it can close over its 50dma but, if it does, would bode well for next week:
Also of note, is the Nasdaq's continues outperformance. It is up over 6% this week compared to the S&P's 2.6% rally. If anything, it is a sign that inflation has topped.
NFLX rallied yesterday and I was able to close the last of my calls for 600%. As posted on yesterdays watchlist, thought $315 was a good target, so once it got there I sold my position. If markets find footing today, would not be surprised to see NFLX works its way up to $333 next week so may look to add some later dated strikes today:
CMG also rallied yesterday, closing up over 2% although off its highs. I have been talking about the potential CMG $150-200 rally off lows and it looks like it is happening. I used the move to close some of my calls for nearly 300%. Will look to close the rest today and may look for some strikes into next week for the eventual $1700 test. These companies that have raised prices on cost/inflation concerns will only benefit once inflation comes back in. They can keep their high prices while margins will be higher due to lower costs:
VKTX received a positive analyst initiation yesterday, with Stifel giving the company a Buy rating with a $22 PT. Would love to see $12+ today and think this only sets things ups for a move above $15 in the coming weeks:
ROKU rallied over 4% yesterday, closing right at its 200dma. Think $70+ is in the cards next week. Will look to close some of my calls to cover costs when I get the chance and hold the rest:
Still have my eye on MASI calls. If the market can reverse the morning gap down, may finally add some calls for a move to $190+:
And this is what I am watching today: MASI, SAGE, CMG, NFLX, ROKU, YEXT, ULTA, MASI, ICPT, AI, ULTA, YOU, DKNG, EXAS, U, SMG, TWLO, TRIP, RBLX, SPOT, AYX, GILD, CDLX, SAM, IBM, SQ, ZYME, ICPT, ALGN, and GNRC.
Let's have a great day!
-JB