Markets closed higher for the 2nd week in a row, with the S&P adding .60%. Asia stocked finished higher overnight while Europe indexes in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are higher while Oil and Gold are lower.
And here is my rant from Friday if you missed: https://www.optionmillionaires.com/jb-afternoon-rant-may-3rd-2024/
Stocks closed higher for the 2nd week in a row, as the Fed was able to ease concerns that they may turn hawkish due to recent data. AAPL's relief quarter and weaker than expected GDP data on Friday also helped keep markets in the green. This week is a somewhat quiet one when it comes to market moving data but there are still over 1,200 companies set to report earnings and plenty of Fed Speakers. Next week we get April CPI, which could be big market catalyst. The SPY closed right at its 50dma on Friday which is $511.07. The next big support/resistance is $512.50 - would want to see a close above those levels today and tomorrow and should bode well into the end of the week. Seems like just yesterday hawkish comments by Fed Speakers caused a late afternoon market tumble. Certainly something to be aware of this week with Fed speakers today and tomorrow ( New York Fed President John Williams and Richmond Fed President Thomas Barkin are due to speak on Monday - Minneapolis Fed President Neel Kashkari on Tuesday):
And of course, want to see the amount of stocks over their 50dma climb:
And last, but not least, small-caps outperformed last week. If they can finally find some buyers could provide a next leg for a market rally:
CDLX rallied another 6% on Friday and I used the move to lock some of my June strikes in for 100% to cover costs. I also went and added some spec May calls. CDLX reports after the close Wednesday, Would want to have locked some/all of my May strikes in before then, though I do think the company reports another great Q and the stock rallies:
IIPR closed up 1% on Friday. They also will report earnings after the close Wednesday but IIPR will be more about the company update. Still think $120+ is coming. Will be looking to lock more of my calls in for profits before Wednesday and then ride a few into earnings, likely just the June strikes:
I finally entered ABDE calls on Friday with the stock showing signs of bottoming. Think $510+ this week(if not higher). If it breaks over $500 today or tomorrow, may actually look for some later dated strikes as well:
BIDU gapped higher on Friday but then chopped around for most of the morning. The premiums weren't moving up in lockstep so I went and closed my calls out for some small profits. Will be eyeing for a possible re-entry ahead of earnings next week:
AI reports earnings in 3 weeks. Still eyeing some more calls to encompass their report on the 29th. Chart is setting up here for at least a move north of $27 in the coming week or two:
Here are the implied moves for companies reporting earnings this week:
Names I am eyeing: TWLO, WYNN, and and U.
Still love CGC and ACB here. Only a matter of time before those start catching fire again. Won't be adding any more strikes just yet.
Rough session for TRUP on Friday despite what I thought was a decent quarter. Will likely take off my watchlist for now...
And here is what I am watching today: DELL, ADBE, TWLO, WYNN, U, AI, ADBE, ROKU, BIDU, BIIB, IIPR, CDLX, VKTX, CGC, ACB, AVGO, MDB, LRCX, CRWD, TERN, AVAV, POOL, URI, GWW, SE, MDB, NOW, TZA, SPOT, EW, SNOW, GPCR, PYPL, and V.
Let's have a great day!
-JB