Markets rallied again with the S&P adding .61% - the DOW did close down .31% but that index doesn't count. Asia markets closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open while the Dollar, Yields, Oil, and Gold are all lower.
And here is the last rant if you missed: https://www.optionmillionaires.com/afternoon-rant-5-26-26/
Markets closed back at all-time highs yesterday all in the face of sticky inflation, higher yields, war in Iran, an AI bubble, and every other headwind market bears can throw at it. AI related names continued their rally, with MU leading the charge after an analyst doubled their PT. Boggles my mind how a company can gain $200 bil in market cap in one day but that is what MU did. So the AI bubble and circle jerk rolls on. After the close today we get earnings from CRM and SNOW, which could help ease concerns in the software space. Then tomorrow we get PCE data. At one point we get some big pull here, for now no reason to fight it. Watching $738 as key support if some how we get a reversal today:
And those yields still going in the right direction:
SMCI. Ugg. SMCI opened higher but then gave back the gains, reversing into the red a few minutes after the bell. I locked some more of my calls in at the open to cover costs, and then once it reversed into the red, closed the last out. With SMCI, you can't rule out anything and I wanted to make sure I didn't take a green position and let it go into the red. Sure enough it looks like SMCI is going to make me pay, gapping into the $38s this morning. I can see it trading to $50+ in the coming days if negative sentiment starts going away. May look to add some FOMO calls today if it holds $38:
Went back to my old friends WW and SSYS for some spec calls. SSYS looks ready to breakout while WW looks set to squeeze. Like I always do, will look to take some calls out on the way up. Big spot at $10 for SSYS. If either shows signs of stalling may close them out and revisit:
And WW:
HPQ took a breather yesterday. Considering I am riding free with profits will likely just hold the last of the calls. Think any decent quarter can start it on a multi-day rally:
SEDG and EPNH continued their rampages yesterday. SEDG rallied another 14%. The premiums are so juiced right now the risk/reward on the calls side makes it tough to enter unless I had 100% conviction it was going to trade north of $100 next week. Same goes for ENPH. If that changes during the day will add some strikes, likely $90 calls(wow). What monsters:
My old friend EDIT is also on watch. One of these rallies it goes from $3 to $15-20. $5 calls look decent right now so may add some spec calls:
And of course, still have my eyes on RBLX, RDDT, and HIMs for some spec calls.
And here is what I am watching today: EDIT, SMCI, GNRC, CRBP, HTFL, ISRG, GLW, ENPH, SEDG, NFLX, TGT, WMT, HTFL, MRNA, ALMU, JOBY, ROKU, AAP, AXSM, COCO, ATOM, ALGN, META, AMZN, CRBP, HIMS, BIDU, NKLR, AAOI, LMND, AVGO, INTU, ADBE, APP, WING, LRCX , ASML,ORCL, U, TTD, and TSLA.
Let's have a great day!
-JB