October 12th, 2022 Watch List

Markets closed mostly lower on Tuesday, with the S&P finishing the day down .65% while the Dow was able to squeeze out a small gain. Asia markets closed mixed overnight while Europe indexes are doing the same this morning. U.S. futures are pointing to a bounce, the Dollar and Oil are higher while Yields and Gold are lower.

And this is what UPB is reading this morning:

Markets are trying to bounce this morning ahead of a huge CPI read tomorrow and ahead of the kick-off of Bank earnings. PPI data came out this morning a little higher than expectations, which put some pressure on futures. Just goes to show how volatile the market maybe tomorrow after the CPI read. The SPY tried, and failed, to hold the key $360 handle. Will need to get back over that soon or fear a $350 test is coming. Under that $320 maybe next:

I added some SPOT calls yesterday with the stock hitting all-time lows. If/when the market bounces, SPOT will be a name I will be looking to add some calls on. SPOT rallied to up near $86 before giving back its gains. I did not want to see a green position turn red so locked the calls in for a small gain. Will be watching again for possible opportunities to play for upside if it holds the $80 handle:

With the SPY under $360, I was looking for a hedge for more downside. I typically would look at TZA but the spreads were wide so I went and added some IWM puts. May look to hold those into tomorrows CPI print. Any upside surprise on CPI and IWM should trade south of $160:

DPZ closed off another 2% yesterday. Would want to see a break of $300 today and an opportunity to close some of my puts out to cover costs ahead of their earnings tomorrow morning. If the stock holds its ground today, may look to close my puts out and revisit tomorrow:

One of my favorite stocks from last year, LOCO , announced a buyback and special dividend after the close yesterday. The stock has been bumping up against the 50dma for months now. This could be the kick it needs to breakout. May look at some calls today to play for a move to $11 or so in the coming weeks:

GNRC closed in the red again yesterday. One of these days it finds a bid and starts a multi-day rally. Still eyeing calls here:

Lastly, CME received an upgrade this morning. The company should be benefitting from a higher rate environment, instead folks have been selling the stock. May look to add some calls today for a move back over $180 in the coming weeks:

Here are the analyst changes of note for today:

CME Group upgraded to Buy from Hold at Deutsche Bank
Deutsche Bank analyst Brian Bedell upgraded CME Group to Buy from Hold with a $200 price target.
Spotify price target lowered to $120 from $140 at Morgan Stanley
Morgan Stanley analyst Benjamin Swinburne lowered the firm's price target on Spotify to $120 from $140 and keeps an Overweight rating on the shares. His estimates are "broadly unchanged," though the continued rise in interest rates leads him to "again" lower his price target and bull and bear cases for Spotify, Swinburne tells investors. Spotify's plan to translate its "substantial and engaged" user base into meaningful free cash flow over time is not reflected in its current share price, the analyst added

InMode initiated with a Buy at Jefferies
Jefferies analyst Matthew Taylor initiated coverage of InMode with a Buy rating and $40 price target. InMode is a leader in the "large and growing" aesthetics market with "well protected, best-in-class" technologies in minimally and non-invasive body shaping, fat reduction, and skin tightening, Taylor tells investors in a research note. Looking forward, he expects continued market growth, higher outside the U.S. penetration, share gains and pipeline contributions to drive upside to consensus estimates. He views the stock's valuation as "undemanding" at current levels
Perficient price target lowered to $110 from $140 at Maxim
Maxim analyst Jack Vander Aarde lowered the firm's price target on Perficient to $110 from $140 and keeps a Buy rating on the shares. The company is well-positioned for continued strong multi-year organic revenue growth, while the stock is now trading at 13.2-times his expected FY23 earnings after a 49% year-to-date decline, which is a "significant discount" relative to its peers, the analyst tells investors in a research note. Vander Aarde adds however that his reduced price target on Perficient reflects multiple contraction across the industry
Intuitive Surgical initiated with a Hold at Jefferies
Jefferies analyst Matthew Taylor initiated coverage of Intuitive Surgical with a Hold rating. The "pioneer" in robotics can continue to take share from traditional surgery and his hospital survey suggests spending will be stable. However, despite attractive fundamentals and an expectation for upside on procedure growth, he sees 2023 consensus system placements and EPS as "modestly too high," Taylor said
Axonics initiated with a Hold at Jefferies
Jefferies analyst Michael Sarcone initiated coverage of Axonics with a Hold rating and $75 price target. He sees solid growth prospects driven by sacral neuromodulation, or SNM, market expansion and ongoing share gains due to the recent F15 launch, but views the SNM competitive landscape as more balanced and thinks the pace of share gains could decelerate, Sarcone tells investors

And here is what I am watching today: SPOT, CME, GNRC. LOCO, TZA, IWM, WING, BLK, APRN, PTON, ROKU, TWLO, CMG, U, WIX, CI, TRIP, SAGE, and PTCT.

Let's have a great day!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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