The S&P500 was a veritable chop fest today, with small dips, rips, and valleys. A lackluster session coming on the heels of start of the NFL season and today was a holiday for many people.
Overall price action was stubborn, much like what you get when you mistakenly wake a Junior High Student early in the morning for school, on a day when there is no school.
S&P500 Futures traded mostly sideways to start the week:
and guess what? Tomorrow is another holiday and schools are closed....
Oh and hey there were stocks moving... ROKU +6% new all time highs. $BABA down 3% new 52 week lows. $VSI up 10% at one point today. But overall... it was not one of the more memorable sessions.
I think this market is setting up for its next move to record highs. I'm sure you've heard me say that before.... after all It is September 10th, and the month is still in the red. It's time to get to work!
Look at that $SPY. The action is getting dull again.....
After a tumultuous early 2018 the market doldrums are coming back. The VIX remains in play, keeping the bears involved, with those elevated readings keeping the "there's no risk in this market' talk on the back burner. Don't worry even when the VIX pulls back there is plenty to fear monger about... plenty....
The VIX could be heading back to 10.00 into the late Fall. The implications being higher stock prices.
I've said it before, I think $SPY $300 is coming this year, and if the action is like we saw off the Turkey lows, its probably coming sooner than later. The start of September swoon from record highs has been measured and methodical.
I think the set up is for upside in the short to medium term, And ultimately another solid month of gains for the market.
And that is all.... now on to some stocks:
How about ole Vitamin Shoppe. Man.... oh Man... Up 10%+ at one point today. On Friday Barclays raised $VSI price target 150%!!!! but downgraded the stock to underperform....
Yes $VSI has under performed by some 220% from the analysts price target... and yet the stock continues to rally. Why? because its a turnaround story. I've written about VSI enough. Try this one for starters if you want my early perspective:
I think $VSI is a great lesson for beginner traders. The TREND is your friend. So many Stocktwitters come to the VSI thread and just say short. The stock is going down.... Why? Because its up 200%... and guess what? They learn there lesson. Either stick with the trend or find another stock that doesnt have a trend to short.
I think earnings gap two is coming... $17-$19 a share... but heck, what do I know. I got calls when it was $6 a share.....
$GME....I don't know. Just like with $VSI earlier this year when the stock was $6, I felt it. I just knew it was going to rally. I knew I was right, I was confident. I feel like that with $GME. I liked the stock without the buyout... Read my thoughts here:
If you look at one of the firms trying to buyout Gamestop, Sycamore, they just raised almost $5 billion for retail investment. Sycamore has bought far far worse than Gamestop and made a mint off of it. I don't even think Gamestop is in the same class as some of the other retail Sycamore has bought and profited from.
$GME with Gamestop rumored to be in advanced buyout talks, its worth noting that one of the rumored buyers, Sycamore Partners recently raised $4.75 BILLION - $GME EV $2.2 BILLION and current mkt cap $1.6 billion pic.twitter.com/t07jQ8COey
— UPBOptionMil (@UPBOptionMil) September 7, 2018
Gamestop is not on the verge of bankruptcy. Gamestop has $90 a share in revenue. More revenue today than it did when it was a $45 stock years ago, with 20% less outstanding shares to boot.
It's all speculation... but the rumors, that were later confirmed by the company, started in June. The latest rumors, that have also been confirmed by the company, came just last week. The latest rumor says they are in 'advanced talks' about a buyout. And that they are working on a formal auction process. To me that means Gamestop will go to the highest bidder, as long as the board approves.
Sycamore just raised nearly $5 billion and Apollo raised almost $25 billion, the largest pe fund ever.
The money is there.....
Of course nothing is certain. However I think its just a matter of time...
$TXMD was down over 3% today.... and it came back with a vengeance. I love this stock in 2018 and into 2019. Atfer 10 days of relentless upside, the stock took a breather. It now looks ready to start its next leg higher.
$MOS has a great set-up into late 2018 and 2019.
I am trading the move via December calls.
With that, have a great evening. See you in the om room tomorrow!