Markets rallied again on Tuesday, with the S&P adding 1.3% and is now up over 2.2% for the week. Asia markets closed higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a flat open, Yields and Gold are higher while Oil and the Dollar are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-222/
Stocks rallied again on Tuesday, as expectations rose that the Fed is set to raise rates only .25% today and likely to spin a more dovish tone after the spat of bank failures in the past weeks - will be volatile at 2pm and beyond today. The SPY found resistance at the 50dma and closed exactly at it. A break above that $398.91 level today and $410s are next:
It was another solid session for SQ yesterday, closing up nearly 4%. As I have been mentioning on the watchlist, the recent bank fiascos only adds more credence to the SQ story( along with Crypto). I think it trades north of $80 soon and into the $90s in the coming weeks. I went and closed some of my March calls yesterday to cover costs and went and added some April strikes. Will look to close the rest of my March strikes and may look to take some profits on the Aprils if it breaks $80 today. It closed slightly above the 50dma, so a good sign if it can hold that today:
ALT announced phase 2 data on their obesity drug yesterday that disappointed. The stock dropped over 50%. VKTX is set to report data on their metabolic drug soon and seems the bears think ALT's data is a bad omen for VKTX despite them being very different. Frustrating to say the least as VKTX gave back over 1 months of gains yesterday. Still love the story and think it trades back to $10 this week and hopefully mid teens in the coming weeks. Not going to add more calls just yet. If there is any silver lining from yesterday, it is that the $9 handle held:
I finally added some BLK calls. Think this is one of the names in the financial sector that was unnecessarily sold off over the past few weeks. If the Fed is able to quell concerns today and the market rallies, think BLK is $700+ before the week is out:
SSYS spurned the buyout offer from NNDM this morning. As I mentioned on the watchlist, thought that would happen. NNDM has a 14.5% stake in SSYS. Would think they come in with a higher offer. Think anything under $25 would also be rejected but would bode well for more highs on the stock. Still holding my April strikes and may look for some higher strikes to play for a move into the $20s in the coming months:
After floundering on Monday, ROKU was able to find buyers and close up over 6% and back over its 200dma for the first time since February. My calls are nearly flat but will need a big move here today and tomorrow for them to come back to life. If it holds $66 today think $70+ comes quick. At the same time, may look to close them out on weakness and revisit:
Still have my eyes on MASI for that move to $190:
And come CMG spec calls for that move to $1650+ into the end of the week:
And lastly, may look to nibble some SPOT lotto calls after an upgrade this morning. Maybe $135+ comes today:
And this is what I am watching today: SPOT, BLK, SQ, MASI, NFLX, CMG, MDGL, SAGE, ULTA, ICPT, AI, YOU, DKNG, EXAS, U, SMG, TWLO, TRIP, RBLX, SPOT, AYX, GILD, and CDLX.
Let's have a great day!
-JB