Stocks closed mixed on Tuesday, with the S&P and Nasdaq finishing slightly in the red while the Dow pulled out a gain. Asia markets ended lower overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a red open, the Dollar and Yields are lower while Oil and Gold are rallying.
Retail sales numbers came out yesterday that bested estimates. Stocks gapped lower at the open after the data as the Fed will have more ammo to either hike rates one more time, or keep them at the current level for longer. Markets then reversed the morning lows to test highs into the early afternoon before giving the gains all back to close flat in a bumpy session. Earnings will take center stage after the close today with TSLA and NFLX set to report. NFLX could certainly set the tone in the tech space. Any miss on sub adds or negative commentary could pull the Nasdaq down. The SPY came up to test its 50dma and failed to breach. Looks like that $433 handle on the SPY is support again. If that falls, the $420s come again before the week is out:
AVAV 'soared' after the open yesterday - pun intended - breaking into the $120s. I used the move to close most of my Oct strikes for over 100% and 400%. AVAV then came back down to earth into the afternoon, closing nearly flat. Still think $125+ is coming but will be a bumpy ride:
ROKU held the 200dma for the 3rd session in a row and I went and added some spec calls to play for NFLX earnings. Think any decent report and ROKU squeezes into the low-mid $70s. Of course the risk is a miss from NFLX and ROKU breaks that 200dma... but I like the risk/reward here so will likely hold the calls into the close:
SHW was downgraded this morning and it is gapping back under $250. I will look to take the rest of my Oct puts off at the open and look to possibly add some Nov puts for a move to $230 or so:
VKTX gave an update on their weight loss drug yesterday at a conference. The data was from earlier this year but they were able to offer new insight that shows reductions in fatty liver which means a solution for NASH... not a surprise since LLY already announced it this summer. You could see there are still tons of folks short the name as the stock was punished right after the release but is now trading higher. Hopefully can be start of a move back to $15+ ahead of its oral data which will be out any day now:
Still hopeful for my DPZ puts but it will need to start moving here soon. If it breaks back under $350 today, may look at some Nov strikes:
Will have my eyes on some Spec lotto puts again this week in names like LULU, LRCX, and MDB:
And here is what I am watching today: LRCX, SHW, LULU, MDB, ROKU, PPG, TZA, LLY, NVO, TWLO, AZO, ULTA, ORLY, NOW, SITE, MELI, ADBE, AVGO, WIX, ALGN, SPOT, OKTA, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB