May 29th, 2022 Watch List

Markets rallied on Thursday, with the S&P adding nearly 2%, as Macy's, Dollar Tree, and other retailer earnings came in better than expected. Asia markets closed higher overnight while Europe indexes are also in the green this morning. U.S. futures are pointing to a higher open, The Dollar, Yields, and Oil are lower while Gold is higher.

And this is what UPB is reading this morning:

It was another strong session for stocks as the Dow, S&P, and Nasdaq all look to put an end to a weekly losing streak dating back to March. The S&P is now up 4% for the week, so pending any crazy collapse today, we should be heading into the long holiday weekend on a positive note. There is still plenty of negativity out there and many saying more downside is coming. It is certainly a possibility but think we can head to $420 or so on the SPY first if we can break thru $410 in the next few sessions:

I added ZYME calls yesterday. The stock has been pummeled(just like most other small-cap bio names) and there is a backdrop of a potential hostile take-over bid. A filing yesterday showed All Blue Capital added 570k more shares to bring their holdings up to 3.9 million shares or nearly 7% of the outstanding share count:

They also own call options. Have to think this is not the last we have heard of All Blue Capital after their $10.50 buyout offer was rejected. Won't add any more calls but would not be surprised to see another bid, maybe for $13-15+. Even without a bid thing the stock can rally back around $10 in the coming weeks. And lastly, there was a PT upgraded this morning, which should help it kept bid today:

I added more IBM calls yesterday with the stock solidly trading above $135. Divy stocks have outperformed the rest of the market and would think that will continue to be the trend. Wont add anything more but do think $140+ comes in the next day or two:

BPT rallied another 6% yesterday and all my BPT calls are green... finally. This is a name that I think can go parabolic, especially on the break over $20. Will look to close some of my June calls out when that happens and hold my July strikes:

ULTA was rallying yesterday on the heels of ELF's report. In hindsight I should have just closed my puts but I liked having the hedge on and the puts were off over 50% already. Sure enough, ULTA reports one of its strongest quarters in recent memory. ULTA has had some monster post-earnings moves(in both directions) so will be watching at the open for some possible lotto positions, though my puts will be toast - but that is the risk holding positions into binary events:

Finally a green session for HSKA... could be the start of a reversal:

Some other names I will be watching for some potential lottos today: ROKU, ULTA, INTU, BYND, U, and MELI.

Have a great extended Holiday weekend all - don't forget markets are closed Monday.

Here are the analyst changes of note for today:

Workday price target lowered to $220 from $275 at Stifel
Stifel analyst Brad Reback lowered the firm's price target on Workday to $220 from $275 and keeps a Buy rating on the shares. The company "marginally" beat top line expectations in Q1 with better than expected profitability, but Reback blames the stock falling about 10% in after-hours trading to management mentioning that several large deals slipped out of the quarter and some deals expected to close in Q2 have now moved to the back-half of the year. Management guided Q2 and 2022 essentially in-line with Street expectations, but Reback believes the slower large deal closing cadence expected in upcoming quarters is likely to limit the magnitude of upside to expectations compared to recent history, he said

Workday price target lowered to $200 from $300 at Needham
Needham analyst Scott Berg lowered the firm's price target on Workday to $200 from $300, reflecting the contracting valuations in the software space over the last six months, but keeps a Buy rating on the shares. The company's Q1 revenue was just above expectations but deal slippage in Q1 and further slippage expected in Q2 will weigh on shares over the near-term, the analyst tells investors in a research note. The shifting time frames was likely influenced by macro sentiment however and his long-term positive view remains unchanged, Berg adds.
Dollar Tree price target raised to $187 from $180 at BMO Capital
BMO Capital analyst Kelly Bania raised the firm's price target on Dollar Tree to $187 from $180 and keeps an Outperform rating on the shares. The company's Q1 results were "quite solid" as it beat on earnings and raised guidance, the analyst tells investors in a research note. Bania adds that Dollar Tree's guidance is likely conservative, particularly on the Dollar Tree brand side, where comp lift and volume decline from the new price point showed "significant improvements from last quarter

Ulta Beauty price target raised to $485 from $470 at Oppenheimer
Oppenheimer analyst Rupesh Parikh raised the firm's price target on Ulta Beauty to $485 from $470 and keeps an Outperform rating on the shares. Ulta reported Q1 results well ahead of expectations, another impressive delivery from the management team, but now on much more difficult comp/margin comparisons, and in a difficult retail backdrop, Parikh tells investors in a research note
Medtronic price target lowered to $117 from $125 at Cowen
Cowen analyst Joshua Jennings lowered the firm's price target on Medtronic to $117 from $125 and keeps an Outperform rating on the shares. The analyst believes the macro challenges it faces primarily supply chain issues and COVID controls in China are conservatively accounted for in guidance and should be temporary
Zscaler price target lowered to $210 from $320 at Canaccord
Canaccord analyst T. Michael Walkley lowered the firm's price target on Zscaler to $210 from $320 and keeps a Buy rating on the shares. The analyst said the company is poised to continue to gain share as a long-term disruptive technology, and he views the stock as a core long-term holding. He said following the strong results and guidance, he reiterate his rating but lowered his target due to the ongoing multiple compression in security software

And here is what I am watching today: HSKA, ULTA, ROKU, ULTA, INTU, BYND, U, POOL, SITE, U, TNDM, SQ, YOU, PLCE, and MELI .

Let's have a great day!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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