Markets closed mixed on Thursday, with the S&P and Dow closing slightly in the red while the Nasdaq squeezed out a a gain. Asia stocks also closed mixed overnight while Europe indexes are in the green this morning.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-314/
Its was a choppy session for stocks on Thursday, with the S&P trying to hold onto gains, only to give the green back into the close. The SPY came up and tested that $453 handle twice and failed to find enough buyers to break-thru. As mentioned on yesterdays watchlist, that is the upper-bollinger band. Will need to break thru that today on gusto. On the flip side, looks like that $450 handle is strong support. This mornings August jobs report came in weaker than expected with the unemployment rate rising to 3.8% with backward revisions to the previous months. Futures spiked on the news and would have to think this report, coupled with the PCE and JOLTS data this week, will only push expectations for rate cuts forward(ie. early 2024):
ROKU rallied into the $82s yesterday morning. I used the move to close some of my calls out for 100% to cover costs. Still think ROKU is on a path to $90+ in the next week or two. Will likely hold the rest into the weekend and may actually look for some $95+ calls as well today. This higher highs and higher lows scenario is playing out:
I also added more TLRY calls yesterday. The HHS news that they want to reschedule Cannabis to schedule III from Schedule I is huge news and opens the door for so many different opportunities in the space. Of course, the change will be reviewed by the DEA and there will be some open debate periods but 2024 could be the year for cannabis. Think it will provide a boost to TLRY. The stock came up and tested that key $3.10 area. Once that breaks $5+ comes:
I also added some IIPR calls. This is a name that will only benefit from the increased interest in the cannabis space and is a name I have traded with some nice success in the past. Think folks will start feeling the FOMO and pile into IIPR.... IIPR is the best of breed in the cannabis sector as a REIT, taking advantage of folks looking for warehouse and retail space. Think it trades north of $90 soon and likely triple-digits in the coming days. May look to add some more strikes today:
BIDU gave back some of its gains yesterday, closing off nearly 2%. Still think this is headed to $160+ and may look to add some more strikes:
LULU posted a beat and raise after the bell yesterday. Would not be surprised to see this reverse just like ULTA did last Friday. The stock is gapping past $390 in the pre-market. If that falls at the open may look for some lotto puts to play for a move south of $370 today:
Still eyeing U for some calls. It chopped around yesterday, closing off 1%. May look to add some lotto calls today on strength and.or some calls into next week:
Still eyeing GNRC and AI as well.
Don't forget, markets are closed Monday.
And here is what I am watching today: IIPR, ROKU. LULU, BIDU, U, GNRC, VKTX, WW, AI,, ULTA, ISRG, GLD, GLLLRCX, NVDA, ALGN, CMG, QQQ, SPOT, TEAM, BLK, IBM, and NFLX.
Let's have a great day!
-JB