Markets closed up last week, with the S&P adding .90%, reversing losses from earlier in the week. Asia markets closed higher overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a lower open, the Dollar, Gold and Yields are higher while Oil is lower.
It was a choppy session for market last week, with stocks shaking out weak hands on Tuesday and Wednesday, only to reverse course Thursday and Friday, with Thursdays rally being the largest since January. This week earnings seasons rolls on, we get the Fed meeting and decision on Wednesday, and we also get the April jobs report on Friday. Have to think the Fed will come out somewhat dovish on Wednesday. A .25% rate hike is expected but would not be surprised if they leave rates unchanged. On Friday, an inline or even worse than expect April jobs number would likely be welcomed by markets. AAPL is the last of the mega-caps to report, with their results due out Thursday after the close. Can't remember the last time AAPL's earnings were out on a day other than Tues/Weds. A decent report with inline guidance and that should be enough to keep markets bid. I have been talking about the $420 handle on the SPY as a target for some time. Think this could be the week it happens pending any crazy surprises from the Fed, AAPL, and the Jobs report. That $410-411 area continues to be key support:
And here are the implied moves for earnings this week:
Last week was one of the quietest trading weeks I have had in sometime. I am not about to make a trade just to make a trade. Hoping to find more opportunities this week.
SAGE reports earnings tomorrow before the open. The bull-flag is starting to pan out. One would typically divide the move from the bottom of the flag post to the top of the post by 2 and you get your target...` so 48-40/2 = $4. So $52 is the first target. If SAGE provides some solid updates tomorrow, think it can trade north of $55 in the coming days:
CDLX announced some great news this morning, getting a favorable outcome on their BRIDG acquisition from last year - meaning much lower dilution to shareholders and better cost. The stock is soaring pre-market. Still holding my May $7.50s and may look for further out strikes. Think this heads to $10+ in the coming weeks:
WW rallied for the third straight session on Friday. The company will report earnings after the close Thursday. Think they will offer some positive commentary on their sequence acquisition and the stock will rally. Not going to add anything to my May strikes and may look to add some calls after they report on Friday for the eventual move into the double-digits:
Not much to add on VKTX that I haven't said over the past few weeks. Still looking to close some of my June calls and look for later dated strikes to play for the move to $30+ in the coming weeks:
TREE is a name that may surprise tomorrow when they report. The stock has bee absolutely pummeled. May look at some spec calls today for a move back to $30+:
OLED is another name reporting this week that I have my eyes on. The stock has fallen over $20 from its April highs. Think any decent report and it is back to $150+:
And lastly, still eyeing WING here with earnings Wednesday morning:
And this is what I am watching today: TREE, SAGE, WING, OLED, WW, RARE, SAGE, VKTX, CMG, SHW, ABBV, GLD, ALGN, SAM, EDIT, MASI, BLK, SITE, SMG, FAZ, EXAS, ULTA, YOU, SRS, BLK, SQ, and ICPT.
Let's have a great day!
-JB