Stocks rallied on Wednesday, with the S&P adding over 1% while the Nasdaq rose over 2%. Asia markets closed higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open as I write this while the Dollar, Yields, Oil, and Gold are all higher.
And here is the rant from yesterday if you missed: https://www.optionmillionaires.com/jb-pre-market-rant-sept-11th-2024/
It was a wild session yesterday, with the S&P reversing a 1.5% loss to close up over 1%. Something that has not happened since Oct '22:
https://x.com/RyanDetrick/status/1834075612719222989
Yesterday's CPI data seemed to take wind out of the sails of those looking for a .50% rate cut next week. The SPY closed back above its 50dma and closed right near that key $555 handle. Today will go a long way in determining if the market is ready to head to new highs, or yesterday's reversal was just a head fake. This morning the PPI data came in a tad hotter than expected on a month over month basis. Weekly jobless claims also rose. Don't think those are as impactful as the CPI data but futures are paring gains after the news. Hopefully markets can find some support after the open and shake-it off. If not, will use that 50dma on the SPY at $549 as a spot I may add more hedge puts:
And small-caps were somewhat disappointing yesterday, lagging the overall market:
But the silver lining, is the amount of stocks over their 50dma:
GS fell at the open yesterday, breaking under $460 at the 10am hour. It seemed to find support there so I went and closed the last of my $470 puts for nearly 1600%. GS then preceded to bounce for the rest of the session and actually close in the green. Still think there will be more opportunities to play for downside on GS in the coming days/weeks. Don't be surprised if you see me add more puts for a move south of $450:
V also tumbled after the open yesterday, breaking under $280, before finding support and bouncing for the rest of the session. I used move to close some of my puts out for over 100% and nearly 600%. I held the rest as a hedge. Just like GS, think V will present more opportunities to play for downside. so will be watching for more entries:
And lastly with markets falling, I added more hedge puts. JPM was nearing the $200 handle and figured could test $195 and below if the market failed to find footing. The stock found support around $201 and bounced for the rest of the day. Will also continue to watch for other possible hedge plays in the coming days:
It was a disappointing session for TERN, reversing morning gains to close down nearly 5%. Still like it for $15+ in the coming weeks:
VKTX received it another upgrade today for the second day in a row. As I have mentioned before, will wait for Sept expiry to add more calls.
RDFN closed in the green for the 3rd session in a row, a welcome sign. Just like TERN, think $15+ soon, though RDFN likely gets there sooner. If it breaks $12 today will look to add more strikes:
Don't look now but ROKU is back over $70 and the last of my Sept calls are nearly flat. It tried to break into the $71s near the end of August but failed on three tries. It received an upgrade this morning and is trading above $73 in the pre-market. If that holds in the morning, I may actually look for some spec lotto calls for a move to $80+ and add more strikes into next week:
ADBE will report earnings after the close. Likely will pass and revisit tomorrow - though I am biased for downside:
Not much to add on YOU or SE. Still love both. Would want to se SE back over $80.
And this 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