Markets fell once again on Wednesday, with the S&P closing down .73% as debt ceiling worries continued to weigh. Asia markets closed mixed overnight while Europe indexes are in the red this morning, albeit off the lows of the session. U.S. futures are pointing to a higher open, the Dollar is higher while Yields, Oil, and Gold are all lower.
Markets opened lower and failed to find any sustained buying pressure, closing right near the lows of the day despite a dovish tone from the Fed minutes. After the close NVDA posted a monster beat and raise... one of the best quarters I have ever seen from a large cap company. The stock is rallying over 27% on the report and the rest of the market is moving higher in sympathy. NVDA will join the trillion dollar market cap club today, pretty remarkable. Also remarkable is the 7 month move for NVDA. The stock was under $120 in October and will likely eclipse $400 today:
Should bode well for the chip and tech space. Going to be tough for the SPY to test and break that $420 handle into the holiday weekend... I'll take a close above $415. Tomorrow we get PCE data. Inline numbers and we should continue the rally:
ROKU showed some strength yesterday despite the market weakness. I used the move to close the last of my weekly strikes - I didn't want to lose the profits. Sure enough the stock its gapping on the NVDA report and in sympathy with the Nasdaq. Will look to take some more of my calls off for next week today and ride the rest. That $59.46 breaks and I may look at some later dated strikes for a move to $65+:
I finally added some ULTA calls. The stock reports earnings after the close so there is plenty of risk. ELF reported earnings that smashed estimates after the close yesterday and the stock is up over 10% this morning. Only bodes well for ULTA. Will look to close some of my calls to cover costs and ride the rest into the ULTA report. A nice read here from Barrons:
TERN closed down 1% yesterday although well of the lows. Someone came in and sold to open over 1000 of the $2.50 Jan 24 strikes... a $1 million position. The open interest on the call side should now be about 4k... doubling since Monday. Think TERN is like VKTX at $7-8... so room for upside. Not adding any more strikes just yet but think this heads to $13+ and beyond soon:
Back to back rough session for VKTX. The story has not changed. If there is more weakness today I will start looking for some more calls. Short data came out yesterday and showed another increase:
And also, a great slide here to show the possible 'best of breed' status for VKTX's obesity drug:
WING is starting to show some signs of breaking out of its slump. If it is green in the morning, may finally add those calls:
Gold is down again. If PCE comes inline or cooler than expected tomorrow, think GOLD heads to $1920 and possibly below. May look at add some GLD puts and/or GLL calls:
And lastly, may look at some spec lotto calls in some chip names today like LRCX, MU, AMD.
And this is what I am watching today: GLD, GLL, ULTA, TERN, VKTX, LRCX, MU, AMD, QQQ, ULTA, WING, WIX, ZYME, SPOT, AXSM, SAGE, RARE, SRPT, BLK, EXAS, W, SHW, ABBV, and ALGN.
Let's have a great day!
-JB