October 21st, 2022 Watch List

Stocks fell for the second session in a row on Thursday, with the S&P losing .80% as Yields rose. Asia markets closed mostly lower overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar, Yields, and Oil are higher while Gold is lower.

Stocks fell yesterday as yields rose to decade highs. Despite the two day sell-off, markets are still up over 2% on the week. After the close yesterday SNAP reported another disappointing quarter, pushing futures down and pressuring tech names who rely on ad spend. Last year at this time, SNAP was an $80 stocks. It will open around $7.70 this morning. Just an amazing fall from grace. ROKU, GOOGL, META, and others are all down in the pre-market. Will be interesting to see if these names can reverse course at the open. If there is a silver lining this week it's that the 200dma has been held on the weekly SPY chart. If that holds again next week, could be the start of a bottom:

ZYME tested the $7's at the open yesterday, came back and tested the low $6s in the morning before bouncing. This morning SVB securities downgraded the stock to a hold with a $8 PT. I may actually look to close out my Nov calls and revisit at the open if it can't hold $6.20 or so:

Will be closing the last of my AMLX calls today and may look at some November strikes to play for the eventual move over $40:

It is option expiration day, so could see some swings. Not going to be overly aggressive but may nibbler some speculative lottos in names like SPOT, TWLO, GOOGL, W, and even SHOP.

As I mentioned the past few days, will have a list of some potential bounce/squeeze names into earnings for the next few weeks out this weekend... stay tuned.

Here are the analyst changes of note for today:

Petco transferred with a Hold at Jefferies
Jefferies analyst Corey Grady took over coverage of Petco and keeps a Hold rating on the shares with a price target of $10, down from $11. He continues to believe in Petco's long-term strategy and growth opportunity, but is lowering estimate due to transitory headwinds in its high-margin supplies business
Generac assumed at Hold from Buy at Canaccord
Canaccord analyst George Gianarikas downgraded Generac to Hold from Buy with a price target of $104, down from $485, as he assumed coverage of the stock. Generac's elevated revenue trends over the last few years have been bolstered by COVID-specific drivers and he would like to better assess Generac's post-COVID demand baseline before recommending the stock, especially in light of the company's recent negative pre-announcement for Q3, Gianarikas said
Paylocity price target lowered to $255 from $294 at Citi
Citi analyst Steven Enders lowered the firm's price target on Paylocity to $255 from $294 and keeps a Neutral rating on the shares. The analyst sees a "more mixed" Q3 for application software names with partner conversations indicating challenges spreading across enterprise software and deals further being delayed, downsized, and with more favorable customer terms. However, there is some optimism of improvement into Q4, with pipeline continuing to build, Enders tells investors in a research note. With increased macro risk, the analyst lowered targets and estimates across his software coverage

Snap price target lowered to $10 from $14 at UBS
UBS analyst Lloyd Walmsley lowered the firm's price target on Snap to $10 from $14 and keeps a Buy rating on the shares. He sees both "positives and negatives" from the quarter, but expects Snap shares to be range-bound pending better visibility, Walmsley tells investors. He adds that he sees Snap being well positioned for an eventual recovery with strong growth in DAUs and time spent as well as new inventory in Spotlight
Western Union price target lowered to $13.50 from $14 at Citi
Citi analyst Andrew Schmidt lowered the firm's price target on Western Union to $13.50 from $14 and keeps a Neutral rating on the shares. The company's analyst day unveiled a constructive strategy and better addressed improvement areas versus prior events, Schmidt tells investors in a research note. However, the stock may trade "relatively down/sideways" in the near-term as the medium-term outlook is absorbed and investors look for execution, says the analyst
Alcoa price target lowered to $37 from $51 at B. Riley
B. Riley analyst Lucas Pipes lowered the firm's price target on Alcoa to $37 from $51 and keeps a Neutral rating on the shares post the Q3 results. The miss was primarily driven by higher costs in the aluminum segment, with carbon and alumina costs carrying the largest delta compared to estimates, Pipes tells investors in a research note. ALcoa expects to see costs improve in the fourth quarter, although key inputs like caustic have proven to be more stubborn, says the analyst

And here is what I am watching today: AMLX, GWW, U, TWLO, SPOT, ROKU, NFLX, CMG, WING, WIX, and CI.

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.

More Posts by JB: View All | Private Twitter Feed: Access Now! (For Diamond Members)