Markets closed mostly higher on Tuesday, with the S&P adding .45%, the Nasdaq rallying .84% while the Dow fell .23%. Asia stocks closed lower overnight while Europe indexes are mostly higher as I write this. U.S. futures are pointing to a lower open, the Dollar is lower while Yields, Oil, and Gold are higher.
I had issues recording the rant yesterday. Will have this mornings up by 10:00am.
Markets gapped higher at the open yesterday but found sellers, with markets hitting lows at the noon hour. Buyers then came in to push stocks higher in a methodical fashion into the close. This morning we got the August CPI data which came in mostly as expected although there was a slight uptick in the month over month number. Not sure that puts a kink in the Feds plans but do think it may erase the possibility of a .50% cut next week - likely dampers some of the bulls spirit. Either way, futures sold off on the news. Would have really liked to see the SPY close over its 50dma yesterday. If it can't break and hold that $549 area today, think $542.50 is next and then likely lower. Almost feels to me like data doesn't matter much right now. I guess time will tell. As I always say, not getting my bear suit on, just open to more downside:
And of course, the silver lining... still strong breadth on the S&P:
GS opened slightly in the red yesterday, then preceded to tumble, closing off over 4% as the financial sector came under pressure. I was able to close most of my puts out for 300%, 500%, and 1000%. Call me crazy, but think the $450s can come so will likely hold the last few of my puts for that outcome while using $471 or so as a stop:
FAZ rose with financials falling. Will continue to hold my Oct calls as a hedge for market weakness:
I also added V puts, as outlined on the past few watchlists. The stock is up 15%+ since the start of August and looks overbought, not to mention think third-party processors will come under pressure at some point. May actually also look for some puts into next week to play for a move into the low $270s:
And lastly, I added some spec puts on LRCX. The stock is testing 2024 lows, if the $716s break, think $680 and below possible. Won't need much for put premiums to soar:
TERN rallied another 23% yesterday - crazy that it didn't rally more on Monday's data. Either way, used the move to lock some of my Oct strikes in for over 100%. After the close TERN announced their offering was priced at $10.49, a great sign, Should help keep a floor in around that level. Think $15+ comes soon enough:
RDFN closed higher for the 2nd session in a row. Needs to get thru that $11.50-$12 area. Once that breaks $15+ comes. Will look to add more strikes on the $12 break:
YOU closed slightly in the red yesterday. Still like it more $32+ in the coming days, even if the market is weak:
Still have my eyes on ADBE for some puts for premium build into earnings:
ENVX finally had the bounce I was worried about. Doesn't change my opinion that $6.90 is coming soon. Will continue to hold my puts:
And here is what I am watching today: V, GS, ADBE, TERN, YOU, MA, RDFN, ROKU, SE, FAZ, ENVX, YOU, BLK, LRCX, NOW, AVGO, and IRBT.
Let's have a great day!
-JB