Stocks sold off on Wednesday, with the S&P losing 2%, as contagion concerns from the Crypto sell-off along with uncertainty around the mid-term elections weighed. Asia markets sold off overnight while Europe stocks are reversing early morning losses. U.S. futures are soaring, the Dollar, Yields, and Oil are lower while Gold is higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-138/
The much anticipated CPI numbers came out this morning and they came in cooler than expectations. Futures spiked on the news and markets look poised to rally today. Yields also tumbled after the report. Back to back data points of declines could go a long way in determining if inflation has topped, so next months report will be very important. I can already hear skeptics calling this an anomaly and inflation resuming its upward trajectory. Either way, markets are enjoying the data. Pending any crazy market reversal or negative news, think the SPY can come and test the 200dma in the coming days at $405:
U did not cooperate this week for me, closing down over 9% into yesterdays earnings. After the close they reported a solid beat and raise but the stock was pressured as the company spoke about declining interest in AD spend. The stock has reversed course this morning and is up nearly 10%. Will need a huge move for my calls but may look for some other speculative lotto calls to play for a move into the $24s today and into tomorrow:
ZYME crossed into the $8s yesterday despite the market weakness, only to sell-off into the afternoon and close down 1%. Still like this name for a move into the double-digits. I may start to look to close the last of my Nov strikes and add Dec calls:
WIX reported a great quarter this morning posting a strong beat and raise. Could see this one trade into the $80s. The company just announced another stock buyback and there is the Starboard activist position announced in September. All catalyst that should provide upside. May look to add some November and/or December strikes today:
Still eyeing FVRR, AXON, DPZ, and WING calls as well today.
FVRR looks poised to test and break the $35 handle. Only $5 increments on the calls, which makes the risk/reward tough. May actually try some $40 strikes:
AXON gapped higher yesterday after monster earnings and then chopped around for the rest of the session. Could see that break into the $180s and beyond in the coming days so will be watching again for some opportunities to add some calls:
WING is set to breakout after its recent churn. $170+ should be coming soon:
We have seen some crazy, historical intra-day market reversals the past 12 months. Don't think that will happen today, but if things start to get dicey and the SPY breaks back under $380, I may look to adds some TZA calls as a hedge. A reversal today would be the proverbial nail-in-the-coffin for any bounce argument and think the bears will push the SPY to $350 and below. Not a scenario I think is likely but have to keep an open mind.
Here are the analyst changes of note for today:
|Okta price target lowered to $70 from $85 at RBC Capital|
|RBC Capital analyst Matthew Hedberg lowered the firm's price target on Okta to $70 from $85 to reflect peer multiple compression but keeps an Outperform rating on the shares following its investor day presentation. The analyst states that he liked seeing a greater level of clarity in Okta's long-term vision, which should ultimately help drive better execution, adding that he views the company as "increasingly compelling|
CarGurus price target lowered to $11.50 from $30 at DA Davidson
|DA Davidson analyst Tom White lowered the firm's price target on CarGurus to $11.50 from $30 and keeps a Neutral rating on the shares. The analyst cites the company's Q3 earnings miss and below-consensus guidance amid a "myriad challenges" around the recent decline in used car retail demand and wholesale volumes, along with the recent wholesale unit price declines, the analyst tells investors in a research note. White adds however that he still sees the long-term outlook for CarOffer as promising as the wholesale auto industry increasingly shifts to digital|
|Dutch Bros price target lowered to $45 from $55 at Jefferies|
|Jefferies analyst Andy Barish lowered the firm's price target on Dutch Bros to $45 from $55 and keeps a Buy rating on the shares after the company reported "solid" Q3 same shop sales and reiterated FY22 EBITDA guidance. He is raising his FY23/FY24 unit growth estimates, but says his lower target reflects the "state of growth multiple valuations in the market|
|Target added to 'Tactical Underperform' list at Evercore ISI|
|Evercore ISI analyst Greg Melich is adding Target to the firm's "Tactical Underperform" list ahead of its Q3 earnings report due on November 16, as he sees Target posting a "miss and lower" report. If he is right on Q3, his sense is that "it will be hard for management to guide 4Q to expanding EBIT margin in light of ongoing softer discretionary demand trends and further clearance activity," Melich tells investors. He thinks "a reasonable near-term floor is $140-$145," added Melich, who has an In Line rating and $165 price target on Target shares|
|Celsius Holdings price target raised to $140 from $130 at B. Riley|
|B. Riley analyst Jeff Van Sinderen raised the firm's price target on Celsius Holdings to $140 from $130 and keeps a Buy rating on the shares post the Q3 results. The analyst expects Celsius to continue outperforming the competition and "point to a long runway for growth ahead that likely will be enhanced by the PepsiCo distribution partnership."|
And here is what I am watching today: WIX, AXON, FVRR, AXON, DPZ, WING, U, CMG, NFLX SPOT, ISRG, AXNX, HUM, CI, PZZA, and TZA.
Let's have a great day!