Markets closed lower on Tuesday, with the S&P falling .64%. Asia markets closed mostly lower overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a higher open. the Dollar and Oil are higher while Yields and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-258/
Stocks failed to find any sustained buyers yesterday and melted lower into the close, with weak retail sales, Home Depot earnings, and the looming debt ceiling weighing. Futures are higher this morning for no reason... comical stuff. The SPY is still trading in a tight range - think the least expected outcome would be a squeeze to $420 or so, which I think will happen soon. At the same time, markets need to hold this $410 area on the SPY - a break and close below likely will not bode well for that outcome anytime soon:
VKTX rallied 12% after its positive NASH data. I am surprised it did not rally more and mind0boggled this is not over $30 already. It received more upgrades during the session yesterday and this morning. I took some time to tabulate some numbers on the call open interest. The call side has over $216 million in open interest... a staggering number. Combine that with $260 million in shorts and this is a Molotov cocktail ready to explode. I may start looking at Nov $40 calls today:
OLED rallied yesterday in sympathy with the chip space. I added some more calls before noon hour and locked some in for profits near the close. The stock closed over the 50dma for the first time since mid-April. Think a move north of $155 is coming. Will need that to happen soon for my May strikes:
SSYS had a solid session after its earnings yesterday morning and is receiving upgrade this morning. Think this trades north of $18. Still holding my May strikes and may look for some June calls today:
WIX reported a huge beat and raise this morning:
It is gapping higher this morning. Will use the move to lock the last of my calls in and possibly revisit.
Rough sessions for EDIT and SAGE yesterday. Still ike both for higher and may look for later dated strikes:
TGT is up this morning despite some weak earnings. We get WMT tomorrow. Think if they come at least in-line, should support a market rally.
And lastly, still holding the last few my AI calls. If it fails to hold $23.50 or so, will close them out and revisit.
And this is what I am watching today: OLED, VKTX, AXSM, SAGE, RARE, SRPT, ZYME, BLK, EXAS, OLED, RARE, GLD, SPOT, NFLX, W, VKTX, CMG, SHW, ABBV, GLD, ALGN, SAM, EDIT, BLK, SITE, SMG, and ULTA.
Let's have a great day!
-JB