Futures are pointing lower, with the S&P set to open down .15% as I write this. Asia markets closed mixed overnight while Europe indexes are in the red this morning. The Dollar, Yields, and Oil are in the green while Gold is lower.
And here is my rant from Friday if you missed it: https://www.optionmillionaires.com/jb-rant-september-29th-2023/
And here is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-330/
Stocks reversed early gains on Friday to close in the red, putting September in the books as the worst performing month so far in 2023 after falling nearly 5%. The S&P has now traded down for 4 straight weeks. If there is any silver lining, small-caps and the Nasdaq squeezed out a weekly gain last week, and the year-to-date performance is still strong:
We are now headed into the 4th Quarter. This week is a light one in regards to catalysts, with the September jobs report being the biggest data piece on Friday, although the JOLTS report Tuesday could be one to watch as well. Next week, earnings season kicks off and we get the Sept CPI number on the 12th.
The Government shutdown was all over the media the past week or so. Sure enough, a last ditch effort on Saturday kicked the can down the road another 45 days and averted a shutdown. Futures opened higher last night but have since pared the gains. As I mentioned last week, I think all this BS is priced in and we can resume the shakeout from Powells comments. I think that $415-$416 handle gets tested in the next week or two and then can start looking for a bottom. If you need to see how the media works, check out Marketwatch this morning who has two conflicting articles right on the front page around the 'Magnificent 7':
Will be watching $425.02 or so as support today and tomorrow, and then the $422.29 lows from last Wednesday as support:
Gold reversed morning gains on Friday, turning red and closing down .67% and for the fifth session in a row. This morning Gold tested $1850 before finding a bit of a bid. If $1850 doesn't hold that $1820 handle comes quick. I closed the last of my Oct puts on Friday for 100% and will look to close some of my Nov puts today to cover costs, then ride the rest:
I also added some NKE puts on Friday and explained the entry on my Rant. Think NKE will succumb to the same pressure LULU and ULTA did after their strong reports. Will continue to hold my puts:
WW closed up 2% on Friday and over that $11 handle. Hopefully can find more footing this week even if the market is under pressure, and break over that $12 handle. Working on a second DD piece on WW and should have out any day now:
LULU gapped higher in symapathy to NKE earnings on Friday but then gave back all the gains to close flat. Still like LULU for a move south of $370 in the coming days:
ROKU closed in the green for a second session in a row on Friday. If markets hold their ground today, could be a nice spec lotto call this week. At some point it is going to bounce $10-15 in a very short period of time:
Still eyeing EDIT here, but will wait for some support. And will likely be very conservative this week in regards to entries.
And here is what I am watching today: ROKU, GLD, DUST, EDIT, NFLX, NOW, MDB, DUST, GLL, SITE, LLY, MELI, WW, IWM, LRCX, NVDA, NOW, ADBE, AVGO, WIX, ALGN, SPOT, OKTA, GNRC, VKTX, LRCX, NVDA, CMG, QQQ, and TEAM.
Let's have a great day!
-JB