Happy Fed Day! Markets tumbled on Tuesday, with the S&P losing 1.16% ahead of the fed decision today. Asia markets closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open as I write this while the Dollar, Yields, Oil, and Gold are all lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-250/
Stocks gave back most of last weeks gains yesterday, as jitters over the Fed, the regional bank crisis, and the Debt ceiling all weighed. Today should be another interesting session with all eyes on the Fed at 2pm and Powell's presser at 2:30pm. The market is expecting a .25% hike. Less or more than that and things could get dicey. And then at 2:30 Powell can hopefully paint a picture of how/when the Fed plans to pause and possibly start cutting rates. Markets will bounce around at 2pm, but if Powell can ease concerns, should find the SPY back near $215 in the coming days. If the Fed raises rates .50% or comes out overly hawkish, could be some downside risk with that $405 handle coming back in play. I think the former is more likely but open to both scenarios:
It was a rough session for SAGE yesterday, selling off over 6% and negating the bull-flag despite updates that were inline. Analyst are out reiterating their bullish ratings on the name so hopefully can find some footing today and head back towards that $50 handle:
As I have mentioned on the watchlist last few days, was eyeing some later dated strikes in VKTX as I am already riding May and June freebie calls with profits. I finally added some July strikes yesterday with VKTX pulling back 5%. Some profit taking is not unexpected and would not be surprised if there are more pullbacks before it breaks into the $30s. Will be looking to close the last of my May strikes soon and just hold the June and July calls:
Was eyeing WING calls the past 2 weeks for earnings:
The spread on the calls were wide and premiums expensive so I passed. Sure enough WING posted a monster quarter this morning and the stock is gapping over 7%. Would thing this trade north of $230 in the coming days so may look to add some strikes at the open:
OLED reports earnings after the close today and has a history of some outsized moves. May lo0ok at some speculative calls to play for a move to $150+ and/or look to trade tomorrow. Just like TREE, any miss and calls will be bidless:
CDLX held up well yesterday despite the market pull--back. Will be looking to close the last of my May calls out and look to add some higher strikes to play for a move into the double-digits in the coming weeks. A great sign it is hold that 200dma:
Lastly, AXSM has been churning last few sessions. They report earnings Monday. Could be the catalyst to for the stock to finally push into the $80s:
And this is what I am watching today: CDLX, WING, OLED, WW, RARE, SAGE, VKTX, CMG, SHW, ABBV, GLD, ALGN, SAM, EDIT, MASI, BLK, SITE, SMG, FAZ, EXAS, ULTA, YOU, SRS, BLK, SQ, and ICPT.
Let's have a great day!
-JB