It was whipsaw day for the markets with indexes closing mixed. The Dow closed in the red while the Nasdaq and S&P both finished the day higher. Asia markets closed in the green overnight while Europe stocks are rallying this morning with the DAX up over 2% as I write this. U.S. futures are pointing to a lower open, the Dollar, Yields, are higher while Gold is lower.
And here is my rant from yesterday if you missed it: https://www.optionmillionaires.com/jb-pre-market-rant-may-10th-2022/
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-20/
Markets opened the day higher on Tuesday then gave back the gains in the early afternoon, before ramping into the close. Despite the green close, the SPY was unable to stay above that $400 handle. This morning we got the April CPI numbers and they came in higher than expected at 8.3% vs. 8.1%. Futures have since given back all the morning gains. Should be an interesting day. One of these numbers will be construed as the top and stocks will reverse course. It is crazy to think where some of these stocks will trade if we continue to fall with so much carnage already, a great chart here of stocks from their highs:
Hoping markets can find some support at the open and get back over $400 or I fear the $380 handle will come soon:
Gold fell again on Tuesday, testing its 200dma right at the close:
JDST and DUST both reversed morning losses to close higher. Still hopeful on JDST crossing that $12 handle and think a move to $14+ can happen if Gold tests that $1775 level. I may look to add some later dated calls on both DUST and JDST today... as mentioned on yesterdays watchlist, they both offer decent hedges if the market continues to roll-over:
It was a frustrating day for IBM. After holding up so well post earnings, the stock finally found sellers and closed its earnings gap - just shows how tough it has been holding calls in this environment. Not going to add anything more on this name until the market starts finding some support:
RNG posted a strong beat and raise Monday after the close and was gapping in the pre-market. I was looking at some speculative calls to play for a move to $80+. The stock fell at the open and actually closed lower on the day. This is a name I will be watching going forward as I think it can outperform:
If markets can't find a bid today will look to add some TZA calls on a break of $394 on the SPY and will be very selective today.
Here are the analyst changes of note for today:
| Unity Software price target lowered to $55 from $145 at Piper Sandler |
| Piper Sandler analyst Brent Bracelin lowered the firm's price target on Unity Software to $55 from $145 and keeps an Overweight rating on the shares post the fiscal Q4 results. The stock dropped 29% after Unity lowered guidance within the game advertising segment, Bracelin tells investors in a research note. The company's share gains are poised to reverse in 2022 after the Pinpointer algorithms have become less effective after data corruption and calculation errors that are just now being fixed, says the analyst. Bracelin cut the price target on his "materially lower" growth assumptions through 2027 |
8x8 price target lowered to $16 from $36 at BTIG |
| BTIG analyst Matt VanVliet lowered the firm's price target on 8x8 to $16 from $36 due to the recent market pullback but keeps a Buy rating on the shares. The company's Q4 results were "mixed", though its recent Fuze acquisition helped drive upside to Enterprise ARR, the analyst tells investors in a research note. The increased focus on improving margins and free cash flow generated better bottom line results, and 8x8 management should be able to continue to focus on improving profitability over pushing for incremental growth, VanVliet adds |
| Bausch Health price target lowered to $15 from $26 at BMO Capital |
| BMO Capital analyst Gary Nachman lowered the firm's price target on Bausch Health to $15 from $26 and keeps a Market Perform rating on the shares. The company missed on Q1 top and bottom line while cutting 2022 guidance due to Omicron and FX/inflationary pressures, the analyst tells investors in a research note, adding that the Xifaxan/Norwich trial decision in August is also a "major overhang" for the stock |
Upstart downgraded to Equal Weight from Overweight at Barclays |
| Barclays analyst Ramsey El-Assal downgraded Upstart to Equal Weight from Overweight with a $35 price target |
| Coinbase price target lowered to $120 from $275 at Canaccord |
| Canaccord analyst Joseph Vafi lowered the firm's price target on Coinbase to $120 from $275 and keeps a Buy rating on the shares. The analyst believes digital spot prices are not down because of anything specific to digital assets. In his view, digital asset spot prices have been drug down by the broader "risk off trade" driven by the macro and has equally affected high valuation stocks and other asset classes causing weakness in the share price of Coinbase |
| RumbleON price target lowered to $31 from $41 at DA Davidson |
| DA Davidson analyst Michael Baker lowered the firm's price target on RumbleON to $31 from $41 but keeps a Buy rating on the shares. The company's Q1 results included a beat to consensus estimates as well as a reiteration in guidance despite increasing macro related headwinds, which speaks to the strength of its business model relative to existing players, the analyst tells investors in a research note. Baker adds that RumbleON remains in the "early innings" of building out their platform, which should result in continued strength ahead |
And here is what I am watching : RNG, CMG, DUST, JDST, TZA, IBB, LABU, GLL, CDLX, and FAZ.
Let's have a great day!
-JB