Markets closed lower on Wednesday, giving back gains, after the Fed raised rates .25% but also offered some caution around the debt ceiling and the run on regional banks. Asia markets closed in the green overnight while Europe stocks are falling this morning. U.S. futures are pointing to a lower open, the Dollar, Yields, and Gold are higher while Oil is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-251/
Stocks fell on Fed Day, giving back afternoon gains, with sellers coming in near the close. The Fed raised rates .25% as expected, and painted a picture that leaves open the possibility of rate cuts before the year is out. During the presser Powell warned about the impending debt ceiling and potential default on US Debt and did little to quell concerns about the run on regional banks. Would have to think they will need to raise the FDIC insurance soon or things could escalate. We get AAPL earnings after the close, the last of the mega-caps. And then we get April jobs numbers tomorrow. The SPY is back at levels not seen since last week(helps keep things in perspective). If the selling resumes, would want to see that $405 handle hold. A decent report from Apple and an inline jobs report and think we start moving back to $411+:
I was almost ready to sit on may hands yesterday but OLED came back down to $128 in the afternoon and I was able to add some speculative calls. After the close the company posted mostly inline numbers and kept their FY guidance. OLED is a great story with over $800 mil in cash, no debt, and is a dividend issuer. Think it will melt up into the mid-$130s today and $140+ in the coming days. May look to add more calls on strength:
Another solid session for AXSM despite the market weakness. They report earnings Monday and will be at a conference a week from today:
Call premiums are holding up. I will likely hold the rest of my calls into next week pending any crazy sell-off. Think any decent update Monday and the stock trades above $80:
Another solid session for VKTX as well. Still looking to close some of my June strikes out to cover costs:
SAGE closed up over 4% yesterday and is back in the box. Will need to get over $50 here soon for my calls to come back to life. BIIB just hit new 52 week highs so could help provide some support:
WIX has been pummeled the last two sessions. It traded near $90 on Monday and closed at $75 yesterday on no true catalyst. The stock was upgraded this morning by Raymond James to Outperform. W and SHOP also reported some decent earnings this morning would should help put a bid in the space. The company reports earnings 2 weeks from yesterday. May look for some calls to play for a move back into the mid-high $80s in the coming days:
Still have my eyes on WING here. Think this can trade north of $230:
Surprised WW didn't rally on the Jenny Craig news yesterday. WW will report after the close today. Any positive commentary on their sequence acquisition should send it above $10. Won't add anything today and may look to add more calls tomorrow on a positive report:
And lastly, RARE has held the 200dma. Love the story and think $50+ soon. Don't think the Biotech M&A craze is over by any means and RARE is another name that likely garners buyout attention:
And this is what I am watching today: WIX, RARE, WING, 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