Stocks fell on Thursday, with the S&P losing .38%. Asia markets closed mostly higher overnight while Europe indexes are in the red this morning. U.S. futures are paining to a higher open, the dollar and Yields are lower while Oil and Gold are higher.
And here is the last rant if you missed: https://www.optionmillionaires.com/morning-rant-5-7-26/
The bubble has popped. Stocks opened in the green and resumed its multi-day rally to test all-time highs by 11am. And then the bubble popped. Joking aside, the market found sellers and reversed into the red and failed to find any meaningful bounces, closing lower and ending a 2 session winning streak. The Dot-com bubble comparisons the last few days have reached a peak IMHO. Maybe it is just me, but most of the pieces I read or news I see find a way make parallels between today and 26 years ago. Obviously when you have insane rallies like we have seen, it makes sense to try and make sense of it. And typically the best way folks do that is by trying to compare to previous instances. And they always seem to come to the dot com bubble, because it is the easiest...
I think it was August or September of last year when I really started looking at this entire AI thing as a big 'Circle-jerk'. There is certainly some questionable things I see with some of the deals and investments. And I remember thinking back then what happens when a spoke or two comes out of the wheel of circle jerks. But here we are 8+ months and markets are chugging along and you have the same pundits screaming crash. Who knows where we are 8 months from now but the lesson is, don't fight the trend. <end rant>
The S&P is up 1.5% on the week so pending any crazy pull, will make it its 6th straight weeks of gains. Crazy. That upper bollinger band as provided some resistance at $736.54 with $724 being support if sellers take over. And on a final note, The April jobs report came out this morning besting estimates... crazy:
SMCI reversed opening weakness to rally to $35 by 11am. It was then a battle but bulls failed to hold the level and the stock reversed course so I closed the last of my calls out for 50%. SMCI is a fickle name and I was hoping this earnings would send shorts to the exits. Not sure I will add anything on SMCI today and wait for the dust to settle but happy to make some coin on it:
$GLW opened near $186 and then found sellers, testing $178. Once it looked like a bottom was in, I finally went and added some calls. The stock found a bit more weakness before closing nearly flat at $182.40. Cramer had the CEO of Corning and Jensen on Fast Money. It was pretty much what I expect, just hip hip horaaay'ing. Still think $248+ is coming. I finally added some spec calls. Will look to close some out on the way up. If it breaks and holds $190 today I may look at some June strikes:
SERV reported a beat after the close and reaffirmed their guidance. Like I have been saying, the reaction is what will matter as bears are trying to keep control. The great part of SERV's earnings is over 30% of its revenues are licensing and other high margin revenues. The stock is flat in the pre-market so who knows how it trades after the open, of course I think it is a $25+ stock so you know my thoughts. If it does show signs of rallying, I may look for more strikes otherwise will sit on my hands:
KODK also reported after the close yesterday. Numbers looked inline but for some reason it is selling off in the pre-market. After my calls expire that will be it for me on KODK unless theres is a major update with the company.
FROG, one of my top 5 stocks for 2026, reported earnings yesterday as well and they smashed estimates and raised guidance. Only monthly strikes on FROG. I looked but the $70 calls that were $15 out of the money were over $1. Not my type of risk reward. Will be watching today for possible entries. Such a great story that should benefit from AI, not be hurt from it:
SE was gabage yesterday... and so was JOBY. Will be eying both again today with SE reporting next week:
ALMU took a tumble with the optic space yesterday. May nibble for a bounce and possibly ATH tap next week:
And of course watching the typical names for lottos like RDDT, APP, LRCX, AVGO and ASML.
And here is what I am watching today: ALMU, SE, JOBY, RDDT, ROKU, AAP, ENPH, SEDG, HTFL, AXSM, COCO, ATOM, RBLX, ROKU, ALGN, META, AMZN, CRBP, HIMS, NFLX, BIDU, SMCI. NKLR, GLW, AAOI, LMND, SHOP, ANET, AVGO, INTU, ADBE, APP, WING, LRCX , ASML,ORCL, U, TTD, and TSLA.
Let's have a great day!
-JB