Markets rallied on Wednesday, finding some support after the 2pm hour, where the Fed minutes painted a picture of a Fed willing to fight inflation via rate hikes and paring back its balance sheet. Asia markets closed mostly higher overnight while Europe stocks are in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-31/
And here is my rant from yesterday if you missed it: https://www.optionmillionaires.com/jb-pre-market-rant-may-25th-2022/
It was a choppy session on Wednesday, with stocks fighting for green into the afternoon. At 2pm, the Fed minutes came out and painted a picture of a hawkish Fed that is also willing to change policy when inflation is back inline. Stocks rallied into the close and are gapping this morning. That $400 handle on the SPY was tested early this morning and certainly looks like strong resistance. If we can get thru that spot, think $410 comes by Friday. Doesn't mean the selling is over, just open to bounces along the way. Will be looking at some possible speculative calls into Friday on that $400 break:
I added to my BPT position yesterday, buying some July calls after the stock broke above $17.50. If oil remains above $105 or so, BPT is a $25+ stock. Over $115 it is a $35-40+ stock:
IBM closed green for the third session in a row, nearing that $135 level. If that breaks will look to add more calls today for the eventual move into the $140s:
I was eyeing ROKU and U for some calls but the morning gaps made the premiums expensive and then the stocks churned for the rest of the day. Still watching both today for some possible speculative calls.
POOL is back on watch after consolidating for the past 20 sessions. A great story and think a move over $420 is coming soon. Will be looking at some calls today:
Still watching HSKA for an entry as well:
ULTA reports earnings after the close. It broke under $340 again yesterday before bouncing. ELF reported great numbers after the close yesterday so could bode well for ULTA. Will likely close my puts out and revisit tomorrow:
Here are the analyst changes of note for today:
|ChargePoint price target lowered to $18 from $22 at JPMorgan|
|JPMorgan analyst Bill Peterson lowered the firm's price target on ChargePoint to $18 from $22 and keeps an Overweight rating on the shares ahead of the Q1 results. The analyst expects lingering margin pressures and potentially slower near-term growth but stays positive on the company's mid-term outlook|
|Jefferies continues to expect sentiment to shift on DraftKings|
|After hosting investor meetings with the senior management of DraftKings, Jefferies analyst David Katz said the meetings were supportive of his view that the bear case of external capital needs is "not a likely outcome" and he continues to expect a sentiment shift on the shares. The near-term focus will be on performance in existing markets, coupled with new market entries this year, and the prospects for California passage and the positive structure suggest the "most positive market opportunity remaining," said Katz, who reiterates a Buy rating and $33 price target on DraftKings shares. California's online sports betting market "could be among the most productive thus far given the size and model," and legalization there could serve as a catalyst should it pass this November, added Katz|
|Snowflake price target lowered to $175 from $250 at Evercore ISI|
|Evercore ISI analyst Kirk Materne lowered the firm's price target on Snowflake to $175 from $250 and keeps an Outperform rating on the shares after the company reported "solid" Q1 results but gave guidance that was a bit lower than the Street view. Certain tech customers have slowed the rate of their consumption Snowflake's guidance now better reflects a choppier macro backdrop, said Materne, who believes that "if the shares aren't at a bottom, they are close." The company also reiterated its FY29 revenue guidance and upped its long-term free cash flow guidance, illustrating that there is no change to the long-term opportunity, added Materne, who expects the upcoming analyst day on June 14 to be helpful in trying to provide some perspective on the updated guidance and long-term outlook|
|Nvidia shares 'too cheap to ignore,' says Evercore ISI|
|Evercore ISI analyst C.J. Muse noted that Nvidia offered a weaker than consensus guidance, though the blame was largely placed on COVID-related lockdowns in China as opposed to many investor's fears of a gaming reset and the "cut may fall short of a desired full reset." However, data center now represents the largest segment at the company and this segment was guided to grow again quarter-over-quarter into July and see sequential growth continuing through the year, said Muse. With shares at $158 in the after-market, he contends "it's time to put a line in the sand" and argues that Nvidia shares "are now at a point too cheap to ignore." Muse is a buyer at current levels and reiterates Nvidia as a "Top Pick" with an Outperform rating and $300 price target|
And here is what I am watching BPT, POOL, SITE, HSKA, IBM, U, TNDM, BPT, ROKU, U, NTES, DOCU, SQ, BTAI, ZYME, CMG, YOU, PLCE, and DECK.
Let's have a great day!