Markets fell on Thursday, with the S&P closing down .62%. Asia markets closed in the red overnight while Europe indexes are lower this morning. U.S. futures are pointing to a slightly lower open as I write this, the Dollar and Yields are in the red while Gold and Oil are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-337/
Markets gave back morning gains, selling off after the lunch-time hour on Thursday. Would think some of it was the higher than expected CPI numbers, and the rest could be chalked up to worries over Israel/Hamas. Expectations for one more rate hike before the year is out actually dropped despite the hotter than expected inflation data. If things start heating up in the Middle-East, could put the Fed in a tough spot... time will tell. Banks earnings kicked off the Q3 earnings seasons this morning with JPM, WFC, and C posting some great #'s. TSLA and NFLX report next week and could also help with market sentiment. Still biased for a bit more downside. That $432 handle needs to hold on the SPY or I think mid-$420s coming again next week:
Small-caps were under-performing all morning yesterday, so I went and added some TZA calls. Sure enough, markets found afternoon pressure and small-caps closed off over 2%. I went and closed some of my Oct TZA calls for nearly 100% to cover costs and will likely hold the rest into the weekend, using $33 as a potential stop area:
DPZ opened higher yesterday and seemed like it was almost a relief rally of sorts. They missed on revenues and their EPS beat was mainly due to a one-time benefit. They also said take-out orders eclipsed delivery. That is not a good sign for a company who was touting their delivery and then finally succumbed to aggregator pressure and is partnering with UBER. Either way, added some weekly puts in the late morning and closed some out for 100% and over 200%. Still held a few into today. IF DPZ continues its downtrend, I may look for some more puts - could get nasty if it breaks 4340. Also still holding some freebies into next week:
I also added some MDB puts. It is not a name I trade often, just think it could offer a quick pull if the market fails to hold up today. Its 50dma is $361, if that falls, low $350s come today:
WW closed down nearly 11% yesterday on no news. It continues to be volatile. The stock was up 255% YTD coming into yesterdays sessions so there are always folks out there taking profits. Story has not changed and think $13+ in the coming days:
A rough session for SHW - a good thing for me - closing down 2.5%. May actually look for some Nov puts to add to my Oct freebies today. The 200dma on SHW is $243, under that can see low $230s coming:
Still bearish on AZO. Will need to break and close below $2500 in the coming days for my puts to pay:
Rough session for ROKU and TWLO. Still eyeing both to use for some possible short-term lotto calls. Though ROKU is nearing the 200dma for the first time since May and TWLO has a death cross. So if I play bounces, will be intra-day or for a very short -time frame:
TWLO:
Will have the implied moves for earnings out this weekend. And here is what I am watching today: SHW, DPZ, WW, VKTX, LLY, NVO, TWLO, ROKU, NFLX, AZO, ULTA, ORLY, NOW, MDB, SITE, MELI, ADBE, AVGO, WIX, ALGN, SPOT, OKTA, LRCX, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB