Markets soared on Tuesday, with the S&P adding 1.91%, as a cooler than expected CPI number gave folks hope that the Fed's rate hike cycle is over. Asia markets rallied overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar and Oil are lower while Yields and Gold are higher.
It was a monster rally for stocks on Tuesday, after October CPI numbers came in lower than expected. The 'higher for longer' narrative the Fed has been spinning set hawkish expectations, and now the data looks like they are under-promising and over-delivering... meaning a rate cut in 2024 may come sooner rather than later. The market ratcheted up expectations that the Fed keeps rates the same until May of 2024, which is when odds of rate cuts went up after yesterdays data. The SPY is trading over $450 this morning and a stone throw away from the July highs. The upper-bollie on the SPY is $448.41. If we reverse today, may provide some support. On the flip side, $452 could be the next spot on the SPY. TGT earnings bested estimates this morning and likely bodes well for WMT who reports Thursday. Biden and XI also meet today. Hard to think that is anything but positive for markets. And of course, looks like a Gov't shutdown will be averted at the end of the week. All positive catalyst heading into the last 6+ weeks of the year:
I added some BIDU calls yesterday. Thanks Easy Trader from the chatroom for the idea, as he was in BABA. The Biden XI meeting should provide a backwind for some China ADR's. Call me crazy, but think $120+ on BIDU is possible this week. The stock is gapping in the pre-market. Will look to lock some in at the open and may actually look for calls into next week when they report earnings. BIDU is a great China AI play:
I also added some ADBE calls as outlined on yesterdays watchlist. The stock looks poised for a move to $630 or so this week:
AVAV rallied over 2.6% yesterday. I used the move to lock some of my Nov strikes in to cover costs. Think $135+ is possible this week. Will look to lock the last of my Nov strikes in and ride the rest of my Dec calls:
TGT reported a great Q this morning. Sure enough it is gapping higher nearly 15% as I write this. I mentioned on Monday and Tuesday's watchlist as a potential spec call play but passed and now regretting it just like SQ and ROKU this earnings season:
May look at some spec calls for a move to $128 or so today:
Nice bounce back sessions for YOU and TRIP with both stocks closing up 4%. Would like to see some continuation today:
and YOU:
FVRR close up nearly 8% yesterday. Will need a big move for my calls to come back to life. If it finds its way into the $24s today, may look at some later dated strikes for the 50dma break and move to $28 or so:
Strong days for VKTX and WW. Not looking to add anything on WW until that 200dma is breached:
Still hopeful on the last of my U calls. The stock is gapping higher again this morning, Once that $30 breaks, $31+ should come quick:
May eye some lotto calls in ROKU, RBLX, and SPOT today.
And here is what I am watching: TGT, FVRR, RBLX, AVAV, ROKU, SPOT, NFLX, DIS, EXAS, AAPL SQ, WW, MA. MDB, AZO, LRCX, LULU, LLY, NVO, TWLO, AZO, ULTA, ORLY, NOW, SITE, MELI, AVGO, WIX, OKTA, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB