Markets closed lower on Tuesday, with the S&P finishing down .28%, with the losses coming in the last 30 minutes of the day. Asia stocks closed moistly lower overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Oil are lower while Yields and Gold are higher.
And here is my rant if you missed it: https://www.optionmillionaires.com/jb-afternoon-rant-march-26th-2024/
And FYI: I will be in and out of the chatroom between 12:45 and 2 today. Sorry for any inconvenience.
It was another boring, choppy session on Tuesday just like Monday, until the clock hit 3:30pm. As if someone pulled the rug out beneath the market, stocks sold off, with the SPY dropping $2 and closing right near lows. Before that happened, it was another extremely tight session, with the SPY trading in a .17% range:
https://x.com/OMillionaires/status/1772676529912213790?s=20
There was no news or catalyst to speak of for the end of day sell-off, and likely just some end-of-quarter re-positioning that set off sellers. Wouldn't be surprised to see more of the same today, with intra-day chop and end-of-day shenanigan - maybe this time it will be buyers. if things get dicey that $512.50 area should provide strong support while that upper-bollinger band at $523.46 could be some resistance if we rally today. And of course, don't forget market are closed Friday:
DJT, the stock formerly known as DWAC, soared yesterday, I was unsure how high my calls would be at the open. I thought maybe $5. Sure enough they opened around $8 and broke $10. I went and closed some of the calls for $10 for over 300% and held the rest. I don't think the FOMO is over and think it has a shot of trading triple-digits in the coming days. Eventually it will come back down to earth:
VKTX rallied nearly 17% yesterday after its positive Oral data. As I mention on my rants, it boggles my mind that NVO gained $30 bil in market cap on their positive Phase 1 Oral data while VKTX lost 20% when NVO's data came out. And now VKTXs data came out and it only gains 17%. Have to think M&A is coming VERY soon in the space. Still holding my April strikes and will likely wait to add anything more just yet. VKTX next possible catalyst is NASH data due out before the 1st half is over. Think this trades north of $100 in the coming days:
Of course wish TERN and GPCR rallied in sympathy yesterday but they both failed to find any meaningful buyers. Still love both for upside in the coming weeks:
GPCR:
What a rough session for CDLX - and that is an understatement. The stock closed off 32% and right near where it opened after its earnings on march 14th. I think it is a complete over-reaction and it is tough for me to wrap my head around why it lost so much. To me it was a bonehead move to do two offerings in less than two weeks time, makes the company and leadership look like idiots. Either way, still love the long-term prospect here and will be looking to add some May strikes:
CGC soared yesterday and at times had recouped all of the previous sessions losses, trading into the $8s before fading in the afternoon to close at $7.23. I used the move to close more of my April $10 calls for over 300% and added some May strikes. Think CGC is on a crash course with the double-digits but will continue to be a bumpy ride, which is why I keep taking some profits on the calls when I can:
I also added some IIPR calls. Have to think this one starts to catch fire soon and trades north of $110. FWIW today is ex-divy day so It will open at $101.76 but the call option premiums already have that baked in. If it shows strength today I may start looking at some May calls as well:
And lastly, I added some spec DELL calls. I think the stock is going to revisit that $131 tap it had after earnings. I may look to add some Apr 19th strikes as well today:
I was looking to add some SPOT calls yesterday but the stock gapped up on the BAC upgrade. It then reversed course and closed nearly flat for the season. Still watching as I think it heads to $290+ in the coming days:
And lastly, if markets find pressure in the morning, I will be looking for some hedges likely with LRCX, AVGO, and/or NOW.
And here is what I am watching today; SPOT, DELL. CGC, IIPR, AVGO, NOW, LRCX, CDLX, GPCR, NFLX, PYPL TERN, RDDT, IWM, ADBE, CMG, and MDB.
Let's have a great day!
-JB