It was a rough day for markets on Wednesday, with the S&P falling 1.43%. Asia stocks tumbled overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-344/
It was a nasty session for stocks on Wednesday, with the S&P opening in the red and failing to find any meaningful bid, closing at lows. MSFT and GOOGL both reported some great Q's after the close Tuesday but folks were disappointed with GOOGL's cloud business. GOOGL closed down nearly 10% and it pulled AMZN with it. AMZN reports after the bell today. Hopefully it can report a strong beat and raise or things will get very dicey. This morning we got the first read on 3Q GDP and it came in better than expected at 4.9% vs. 4.3% estimates - its strongest Q since 2021. Tomorrow we get PCE data. If that comes in hot, look out. The Nasdaq is back in correction territory and the S&P has closed down in 6 of the past 7 sessions. We had a bounce Tuesday, would not be surprised to see one again today. At the same time, that $415-416 target I have been talking about for the past few weeks on the SPY has been hit. Still would like to see a capitulation type of move before I start changing my bearish bias:
As outlined on yesterdays watchlist, I added some MDB puts. Sure enough, MDB found sellers and closed down over 6%. I went and closed some of the puts for 100% and 300%. The stock is gapping lower this morning. I will likely look to close the last out at the open and revisit:
I also added more LRCX puts. It is trading right near its 200dma. If that breaks, think $560 and below comes quick:
SHW closed higher after a few positive analyst notes. Still think it is coming down into the $220s in the coming weeks:
Another strong day for AVAV, $125+ soon. Will start looking to lock some of my Nov strikes in when I get the chance to cover costs:
ALGN is tumbling this morning after posting a miss and lowering guidance yesterday. I was almost going to add some spec calls, so I am thankful I did not. Sometimes a winning position is one you do not take. The stock will be down over 50% from its July highs. Will likely take it off my WL for now:
ORLY posted a beat and raise after the close yesterday. Pending any crazy reversal, my puts will be bidless. Still bearish the sector and will continue to look for opportunites
Will continue to keep things small into tomorrows PCE data.
And here is what I am watching today: MDB, ALGN, WW,, AZO, LRCX, LULU, MDB, ROKU, PPG, TZA, LLY, NVO, TWLO, AZO, ULTA, ORLY, NOW, SITE, MELI, ADBE, AVGO, WIX, OKTA, CMG, QQQ, BLK and TEAM.
Let's have a great day!
-JB