Markets rallied again on Thursday, with the S&P adding 1.89% and for the fourth session in a row. Asia stock closed up overnight while Europe indexes are mixed this morning. U.S. futures are pointing to another rally, the Dollar and Yields are falling while Oil and Gold are in the green.
And here is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-349/
Markets staged another impressive rally yesterday with the S&P adding nearly 2% and is now up nearly 5% in the week with one day left. This morning the October jobs report came in worse than expected and the unemployment rate rose to 3.9% from 3.8% - good news for the Fed. Futures rallied after the report. After tumbling under the 200dma last week, the SPY is back above that and nearing the 50dma, a spot we have not traded above since October. If that $433.26 handle breaks, could set off some more buying though I still remain stubbornly cautious. If we get a reversal today, that $429 area should provide some support:
WW reported earnings after the close yesterday that missed estimates. They also said their revenues for the full-year will now come in at the low end of their previous guidance. The stocks fell over 10% in the after-hours but has recouped some of the losses this morning. Of course as first glance, the numbers do not look so great, but If you dig in, there continues to be reasons to be optimistic. The majority of the revenue miss was declines from their product line, which they are discontinuing. Members are also ditching the face-to-face meetings and going virtual which lowers the ASP. Lastly, the company posted 4 million active subscribers, 6% growth on a YOY basis. Another first for the company. Think WW still remains a great opportunity here for much higher in the coming months, especially as we head into the New year. Was looking to add more calls but passed, will look to add more today at the open if it shows signs of reversing and breaking back above $8:
SHW and DPZ finally joined the rally yesterday with SHW adding over 2% and DPZ adding over 1% with both closing back over their 200dma's. Going to need to find sellers again soon for any chance for my puts:
MDB found pressure yesterday despite the market strength, closing down nearly 3%. Going to need some continuation here today for my puts to pay. Will revisit again next week:
Of course, adding insult to injury this week, is watching ROKU soar over 30% on their earnings and then seeing SQ trading over $50 after starting the week at $40. Not going to start chasing SQ here but do think ROKU could keep melting higher into next week. Will be looking for some possible calls today again:
AAPL was the last of the mega-cap names to report after the close yesterday. They posted a strong beat but then offered up some conservative guidance into the holiday season. Typical for AAPL to do that but it is weighing on the name. Not one to trade AAPL much in the past few years but may look for some spec lotto calls today for a bounce back over its 50dma $177.50 or so:
Also will be eyeing some spec lotto trades today in SPOT, CMG, ALGN, and possibly AMZN.
And here is what I am watching today: AAPL, ROKU, SQ, WW, V, MA. MDB, AZO, LRCX, LULU, ROKU, PPG, TZA, LLY, NVO, TWLO, AZO, ULTA, ORLY, NOW, SITE, MELI, ADBE, AVGO, WIX, OKTA, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB