October 27th, 2022 Watch List

Markets closed mostly lower on Wednesday, reversing morning green, with the S&P closing down .74% while the Dow squeezed out a small gain. Asia markets closed mixed overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a higher open, the Dollar, Yields, and Oil are higher while Gold is lower.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-128/

Stocks looked poised to continue a rally yesterday that started on Friday, only to give back morning gains and close lower. It has been a strong move off the lows with not much of a catalyst to speak of so some consolidation is to be expected. The 50dma on the SPY is $384 and ironically enough, it is the upper Bollinger band as well. Could be some tough resistance today and tomorrow:

SPOT couldn't find any buyers yesterday, broke into the $80s, and closed nearly at the lows of the day. All that despite decent numbers. Will continue to have on watch for some opportunities to play for a bounce:

NFLX, on the other hand, has found strength after its earnings report and broke into the $300s yesterday. If the markets find footing today, could be a nice lotto play into tomorrow for a move over $310. Will be watching for some possible call opportunities:

WING enjoyed a monster session yesterday, closing up over 15%. I was eyeing calls at the open but the premiums were out of control. Think WING can head to $170+ in the coming weeks so will be watching for some call opportunities today and tomorrow to play for that move:

CMG took it on the chin yesterday despite decent numbers. The stock closed right near its 200dma. If it can find buyers today above that $1483 handle, may look to add some calls for a move back into the $1500s. Also think the MCD beat this morning could help push some of these causal dining names:

DXCM and DECK report after the close today. May nibble some lotto calls if I see any decent risk/reward strikes.

Yesterday saw some big earnings moves after the close - some up, some down. META and ALGN were two big downside names while NOW, PI, TDOC are some that are rising big this morning. Think there will continue to be opportunities to play some oversold names.

Here are the analyst changes of note for today:

Arista Networks added to 'Tactical Outperform' list at Evercore ISI
Evercore ISI analyst Amit Daryanani added Arista Networks (ANET) to the firm's "Tactical Outperform" list after Meta (META) reported earnings and gave a 2023 capex outlook "well ahead of consensus expectations." Meta's guidance increases his confidence that Arista will be able to "comfortably outperform" consensus expectations in 2023, said Daryanani, who expects Arista to provide its 2023 revenue outlook either on its upcoming earnings call or at its analyst day on November 3. Daryanani has an Outperform and $145 price target on Arista shares

Impinj price target raised to $109 from $94 at Lake Street
Lake Street analyst Troy Jensen raised the firm's price target on Impinj to $109 from $94 and keeps a Buy rating on the shares following what he calls "another strong quarter." RFID demand continues to outpace wafer supply, as the company reported Tag IC demand was more than 50% greater than shipments in Q3, "marking the sixth consecutive quarter of this demand/shipment imbalance," Jensen tells investors. His increased target reflects revenue outperformance and upward revisions to his estimates following the report
eladoc price target lowered to $45 from $55 at Oppenheimer
Oppenheimer analyst Michael Wiederhorn lowered the firm's price target on Teladoc to $45 from $55 and keeps an Outperform rating on the shares following quarterly results. Overall, Q3 results reflected Teladoc's success in expanding margins, with BetterHelp driving gross margin and Tech/Dev savings driving OpEx, the analyst notes. Despite BetterHelp's ad yield still trending below early-year expectations, it did see stabilization in Q3, Wiederhorn adds. The analyst believes Teladoc is righting the ship with a balanced approach toward efficiency and growth, and remains attractively valued at current prices for long-term investors
Sherwin-Williams price target raised to $251 from $244 at BMO Capital
BMO Capital analyst John McNulty raised the firm's price target on Sherwin-Williams to $251 from $244 and keeps a Market Perform rating on the shares. The analyst cites the company's "solid" Q3 results and "equally strong" Q4 guidance, noting that Sherwin-Williams appears to have found its footing. McNulty adds that his growing confidence in the potential for a raw material tailwind offsets potential weakness in the company's end-markets
Wingstop price target raised to $140 from $120 at Stifel
Stifel analyst Chris O'Cull raised the firm's price target on Wingstop to $140 from $120 and keeps a Hold rating on the shares after the company reported Q3 adjusted EPS, sales, restaurant margin and EBITDA that were all above Street estimates. Though Wingstop reported "solid results," he believes the stock's strong reaction reflects some short covering, said O'Cull, who argues that investors at the current level expect robust same-restaurant sales to "at least sustain the current valuation multiple," which he is "unwilling to underwrite

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

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