March 6th, 2024 Watch List

Markets fell on Tuesday, with the S&P dropping 1.02% while the Nasdaq closed lower by 1.65%. Asia stocks closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-417/

The S&P closed lower for the second session in a row, dropping over 1%, on no real news to speak of outside of Bitcoin reversing quickly from 2021 highs, the supposed magnificent 7 stocks all falling besides NVDA, and ZS earnings pressuring some of the tech names. This morning markets are looking to recoup some of the losses. Powell is testifying in front of Senate and Congress committees today and tomorrow and already came out with prepared remarks this morning pretty much echoing recent comments that the Fed will likely cut rates this year but not yet. I mentioned that $504 handle on the SPY as support the past few days and sure enough markets came down to that level before bouncing. Will continue to be strong support with that $512.44 area being resistance if we rally today:

And still watching the small-caps:

GPCR looks ready for the next leg to $50+. I will look to close the March $45s at some point and will start looking for some April strikes. Really like this name as a sympathy play on VKTX and the GLP-1 craze:

I will also look to add TERN today. It is a name I traded last year with not much success. It is another GLP-1 name but only in Phase 1 of a possible oral solution with data out in the back-half of 2024. Only a $400 mil market cap and think it could see some sympathy FOMO. Will be looking at further out strikes to play for a move north of $15 in the coming months:

ALT held the 50dma yesterday and closed up nearly 2% on a rough market day. Hopefully a sign it is ready to resume its uptrend into multi-year highs:

As I have been mentioning, think some of the AI/CHIP names will fall 5-7% one day for no reason other than folks taking profits after their massive runs. Yesterday some cloud/tech names were getting punished including SNOW, MDB, and others. I went and added NOW puts as the stock was breaking under its 50dma for the first time since October. Think it offers a nice hedge and will trade south of $700 if the weakness continues:

Horrible timing on my URI calls. The stock tumbled over 4% on no news or catalyst. Will continue to have on watch for some more possible positions but will need a huge move in the next week for my calls to come back to life:

BURL will report tomorrow for the open. There is an over 10% implied move in the stock and premiums are insane past $240 on the weekly strikes. I will likely wait until tomorrow to possibly play but do think they post a strong beat and raise and the stock rallies... just not sure I like the risk/reward:

DWAC tried to test and break $50 before finding sellers and closing at $46.50. Still think this catches FOMO soon:

EDIT has been a disaster since its earnings run-up. Lucky to get some of my calls out for 100% to cover costs. If it holds the $8.50-$9.00 area I may look to add more later dated strikes:

And still have my eyes on SE, it closed up another 3% yesterday despite the market weakness. Could be $60+ soon:

And my broken record rant : 'at some point this AI/Chip craze will find some seller and names will be down 5-7% on no news or catalyst. So will continue to eye possible hedges in LRCX, AMD, and MU(AVGO reports this week so premiums are elevated).

And here is what I am watching today: TERN, SE, GPCR, BUR, AMLX, EDIT, VKTX, ALT, LRCX, 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

JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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