Markets closed mixed to start this holiday shortened trading week, with the S&P and Nasdaq closing higher while the Dow finished in the red. The Dow has now closed lower in 6 of the past 7 sessions. Asia markets fell overnight on weaker than expected data while Europe stocks are following suit. U.S. futures are pointing to a lower open, the Dollar and Oil are lower while Yields and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-266/
Stocks gapped higher at the open yesterday, only to give most of it back, with the S&P closing nearly flat. This morning futures are pointing to a red open, with weaker than expected China data weighing. The SPY looked a bit extended over that upper Bollinger band, so think a little consolidation here would bode well for that eventual $425 test and hold. There is a debt ceiling vote today, and looks like that should pass, so a non-event again. And then we get the May jobs reports on Friday. $418.73 was the low yesterday, so would want to see a close above that today:
BIDU and SAM were rallying at the open yesterday... BIDU on the AI hype while ROKU was running in sympathy with the tech space. I added more calls on both. BIDU may struggle at the open after the weaker China data but still think it heads to $130+ in the coming days:
ROKU is still having a hard time breaching its 50 and 200dma. Once it does, think $60+ comes quick and possibly $70 in the coming weeks:
I added some SAM calls yesterday with the stock running on an upgrade. I was able to close some out for over 200% and held the rest. Think this theme around Budweiser is not going away anytime soon and should benefit TAP, SAM, and others. Not to mention the chart on SAM looks phenomenal . A gap fill look possible this week and maybe $380+ in the coming weeks when that happens. May look at some later strikes today:
I sold the last of my ANET calls yesterday for over 800% - what a monster. At some point it will retrace so didn't want to lose the profits. Likely will stay on the sidelines on this name for the time being:
I also added FVRR as a back-door trade on AI - meaning I think it is being overlooked. Their recent earnings were phenomenal but the stock reversed a huge morning gap higher to close in the red. It has struggled ever since. A quick search in the FVRR platform shows a huge increase in folks leveraging the AI boom to offer services to cater to it. Once folks realize they can use FVRR for it, have to think revenues will soar above current expectations - and likely already has. June calls looked cheap on a risk/.reward basis and I may look to add some July calls today:
TERN and VKTX received some positive analyst commentary this morning:
Will continue to hold what I have on those two.
WING is getting really tight. One of these days it will break this range and test new all-time highs. Still watching closely:
And lastly, DPZ could be nearing a bottom here if it holds that $290:
And this is what I am watching today: WING, SAM, DPZ, OLED, BIDU, GLD, AMD, LRCX, MU, NFLX, GLL, TERN, QQQ, ZYME, SPOT, AXSM, SAGE, RARE, SRPT, BLK, EXAS, W, SHW, ABBV, and ALGN.
Let's have a great day!
-JB