October 31st, 2022 Watch List

Stocks futures are pointing to a lower start this morning, with the S&P set to open .43% lower as I write this. Asia markets closed mixed overnight while Europe indexes are mostly in the green this morning. The US 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-130/

The S&P added another nearly 4% last week making it 2 consecutive weeks of gains. The Dow, on the other hand, is up for 4 weeks in a row and is enjoying its best month in nearly 50 years. The Dow is up over 14% in October which comes to a close today. AAPL, MMM, CAT, UNH, and JNJ have led the charge. The fact that stocks were able to rally despite the disappointing results from AMZN, GOOGL, and others can be construed a positive. This week will go a long way in seeing if the bad is already priced into names and we can continue the rally. We also have the Fed on Wednesday, where another .75% hike is expected. The press conference will be very important again to see if Powell is starting to scale back on the hawkishness. The SPY closed back above its 50dma for the first time since early September. It should provide support if we find any weakness today and tomorrow. If that holds, the 200dma could be the next target in the next week or two.

There are over 1400 companies reporting earnings this week. Needless to say this will be a busy week and important for the market. Here are some of the implied moves:

I added some TNDM calls on Friday for premium build into their earnings this Wednesday after the close. The stock has been churning around for the past month and think any decent report puts the stock north of $70. If the stock fails to hold gains into earnings I may look to close my Nov strikes and add some weekly lotto's:

Casual dining names have been on fire as of late: WING, CMG, DPZ, YUM, and others have all staged monster rallies.. SHAK reports earnings Thursday morning. Think they will report a decent quarter and the stock will rally. Only monthly strikes with $5 increments so it is a little more difficult to find decent risk/reward strikes. May look to add the $65s and look to close some/all out before earnings Thurs:

Another sector that has been on fire is health insurers. HUM. CI, and UNH have enjoyed strong rallies. I was early on CI calls, trying to play it for a move in the summer. Last week, it finally broke into the $300s and closed at $324 on Friday. CI reports earnings before the close Thursday. May look to add some strikes for a move to $340 or so. HUM reports earnings Wednesday morning so may look at some calls there as well:



Also watching SPOT, TWLO, U, and ROKU today... ROKU reports earnings Wednesday after the close.

Here are the analyst changes of note for today:

Veeva initiated with an Equal Weight at Wells Fargo
Wells Fargo analyst Stan Berenshteyn initiated coverage of Veeva with an Equal Weight rating and $180 price target. The analyst views Veeva as the "last mover" software vendor for commercial and pre-commercial pharma R&D efforts. As such, he expects much of the pharma industry to continue standardizing on Veeva's expanding product suite, which should endow Veeva with deep market share penetration and attractive business economics. As one of the most consistent high-margin growth stories in tech, Berenshteyn believes market expectations are relatively consistent with his outlook and give proper credit to this high-quality business
Atlassian price target lowered to $220 from $260 at Jefferies
Jefferies analyst Brent Thill lowered the firm's price target on Atlassian to $220 from $260 and keeps a Hold rating on the shares. Software app names "are in for another tough earnings cycle" as some have yet to acknowledge macro headwinds, Thill tells investors in a research note. The analyst's channel checks suggest weakness in Europe, but "resilient" demand in the U.S. Despite easier sequential comps for some stories, macro headwinds are strengthening, says Thill, who reduced 2023 sales numbers across the spac
Charter current valuation 'frankly silly,' says Pivotal Research
Pivotal Research analyst Jeffrey Wlodarczak lowered the firm's price target on Charter Communications to $475 from $560 and keeps a Buy rating on the shares. The company reported an "overall decent" Q3, with better than expected data and wireless subscriber results and modestly lower than forecast revenue and EBITDA growth, Wlodarczak tells investors in a research note. He views the stock's current valuation as "frankly silly," saying "investors remain paralyzed with unfounded fears regarding the future of cable on what we view as a temp slowdown in data growth, which has created what we believe is an extraordinarily attractive opportunity.

MercadoLibre price target lowered to $1,400 from $1,470 at Credit Suisse
Credit Suisse analyst Stephen Ju lowered the firm's price target on MercadoLibre to $1,400 from $1,470 and keeps an Outperform rating on the shares ahead of quarterly results. The analyst's estimates step down primarily as a result of ongoing FX headwinds - that said, he anticipates better near-term gross merchandise value trends. For Q4 and 2023, Ju continues to focus on the macro environment and the strength of the consumer as well as MercadoLibre's ability to execute through a more challenging environment
Digital Turbine price target lowered to $20 from $32 at Roth Capital
Roth Capital analyst Darren Aftahi lowered the firm's price target on Digital Turbine to $20 from $32 given with a mix of headwinds that could limit visibility and broader multiple compression, despite believing the free cash flow yield is "very enticing." The analyst keeps a Buy rating on the shares
Gilead price target raised to $92 from $84 at Maxim
Maxim analyst Jason McCarthy raised the firm's price target on Gilead to $92 from $84 and keeps a Buy rating on the shares. The company's Q3 results were "strong", driven by its Veklury and HIV franchise, the analyst tells investors in a research note. McCarthy adds that the more important takeaway from Gilead's results was the continued growth of its oncology platform, with Trodelvy and Yescarta expanding penetration into existing indications

And here is what I am watching today: CI, HUM, SHAK, DPZ, ROKU, TNDM, SPOT, TWLO, U, PYPL, and CMG.

Lets' 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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