Stocks rallied on Wednesday, with the S&P adding over 1%, as retailer earnings are coming in better than feared and the regional bank fiasco keeps getting further away in the rear-view mirror. Asia markets closed higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are higher while Oil and Gold is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/reads-of-the-morning/
It was a strong session for stocks on Wednesday, with the SPY rallying hard into the afternoon, closing up over 1% and over that $415 handle. The last time it closed above $415 was late April - hopefully this time it sticks and we head for that $420 test I have been chirping about the past few weeks. This morning WMT came out with better than expected earnings and raised guidance. Seems like all these companies expectations have been reset the past 8-12 months and now we will be in a beat and raise cycle. Either way, should help keep stocks bid today. That $417.60 area looks like some resistance. Would like to see a churn there today and tomorrow and maybe get that $420 test next week:
AI, AI, AI... seems that is all people are taking about these days. I used the move in AI to close the last of my calls for nearly 400%. It is such a divisive name and would not have been surprised to see another one of these short publications come out with another piece and see my profits disappear. Sure enough, the stock is gapping into the $27s this morning. Not sure I will revisit today but will continue to be on my radar. It has been a cash cow in 2023:
It was another strong session for OLED yesterday. I used the move to close more of my calls for over 150%. Will likely hold the rest for a possible break over $160 in the coming weeks but will need another strong day today and tomorrow for my May strikes, thought I have plenty of time on the June's Will use the $148 area as a possible stop:
Not much to add on VKTX... the stock churned its move from Tuesday. Still mind-boggling to me it trades down here. Between the open options and the short interest, traders are on the hook for over $500 million on a stock that trades $80-90 million a day and is valued at $2.5 billion. Trying to put a post together to help put this in perspective relative to other small-cap Bios with similar profiles, ect. To me, all this means is VKTX is a Molotov cocktail ready to explode:
ZYME received a PT upgrade at Citi this morning. Today is likely the day I will add some calls for the break above $10 and beyond:
It was a disappointing session for WIX, despite the stock closing in the green. Still like it for higher, and possibly over $90 in the coming weeks. It is receiving positive analyst commentary this morning. May look at adding some June strikes today:
WW closed up over 10% yesterday and filled the gap from the stakeholder sale. Just like AI, the weight loss drug hype is not going anywhere anytime soon. Have to think WW only benefits. May look at some more strikes today:
Also watching BLK, SPOT, CMG, and WING for some possible spec call into tomorrow(it is Monthly expiration day).
And this is what I am watching today: WW, WIX, ZYME, BLK, CMG, WING, SPOT, OLED, VKTX, AXSM, SAGE, RARE, SRPT, BLK, EXAS, RARE, GLD, W, SHW, ABBV, GLD, ALGN, SAM, EDIT, BLK, SITE, SMG, and ULTA.
Let's have a great day!
-JB