Markets reversed early morning losses to close higher on Monday, with the S&P adding .63%. Asia markets closed mostly higher overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a green open, the Dollar and Gold are higher while Yields and Oil are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-335/
Stocks overcome morning jitters from the Israel/Hamas war to close higher to start the week, resuming the reversal it staged on Friday. This morning, markets are looking to do the same. It seems like most times there is a geopolitical event that should pressure stocks, markets do the opposite and rally. I can remember 2011 when the Tsunamis hit Japan, nuclear meltdown was on the table, Japan cities were obliterated, and over 18,000 people lost their lives. One would think a disaster of that magnitude of the 3rd largest economy in the world would have negative ripple effects around the globe. Markets did fall the first session but then recouped all the losses and then some the next session and never looked back. Not saying that happens here, but just shows that markets can trade contrary to what one would think it should with a negative catalyst. The SPY came all the way up to that $432 resistance yesterday. It will be make or break today ahead of the PPI numbers tomorrow and CPI on Thursday. My bear case for $415-416 on the SPY scenario may be off the the able for now if markets can find another bid today and PPI data comes in cooler than expected tomorrow. Still leaning more towards a relief bounce these past two days then anything else and then a resumption of the selling with a retest of $420:
SHW fell at the open yesterday, breaking under $250. I used the move to close some of my puts for over 150%. Will likely hold the rest for a move into the $230s in the coming days while using the $255 handle as a potential stop:
DPZ also opened lower yesterday, testing $335 before bouncing nearly 5% to close at $350. The last of my Oct puts are still solidly green. I may actually hold the puts into earnings pending any bounce to $355 or so:
Another great day for WW, closing up 13.12% after the WSJ published a nice piece over the weekend that had Oprah peddling back her comments about Ozempic and weight-loss drugs. $12.32 is the key spot. Once that breaks, I will add more strikes for the eventual move to $13+ and beyond:
I wrote a quick snippet yesterday on why I have been dabbling in puts in names like DPZ and SHW lately and why I have been watching AZO and ORLY:
AZO and ORLY were both upgraded this morning. I may use the gap higher to finally add some puts.
AZO to $2400:
And ORLY below $860:
MCD traded down to $247 yesterday before finding a bid to close at $249.92. Still think the anchor is on this one to at least $240. May look for some further out put strikes today:
If the SPY holds $432 today, will continue to eye some spec calls in names like TWLO, ROKU, and NFLX.
And here is what I am watching today: TWLO, ROKU, NFLX, AZO, ULTA. DUST, GLD, TZA, ORLY, NFLX, LLY, NOW, MDB, SITE, MELI, WW, IWM, ADBE, AVGO, WIX, ALGN, SPOT, OKTA, GNRC, VKTX, LRCX, CMG, QQQ, BLKand TEAM
Will be on audio at 11am today. Let's have a great day!
-JB