Markets tumbled again on Thursday, with the S&P losing 1.64% in an ugly session. Asia markets closed mostly higher overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a higher open, the Dollar, Oil, and Gold are higher while Yields are lower.
And here is my rant form yesterday if you missed it: https://www.optionmillionaires.com/jbs-morning-rant-september-21st-2023/
It was an ugly session for markets yesterday, with stocks gapping down at the open and failing to find any meaningful bounces, closing at the lows of the day. It felt like a hangover from Powell's comments and the Fed reiterating their stance of rates being high for longer. I said it on my rant yesterday and on the watchlist, think this may keep stocks under pressure for the short term... ie. a week or two. There will be no true catalyst to speak of until October, and all next week it will be headlines on the Gov't shutdown. With markets still up nicely YTD, think it will give folks an excuse to take some profits. The SPY came into the low $430s(mentioned that was a possibility on Monday's watchlist). You saw some oversold names show some life yesterday with ROKU closing in the green and NFLX in the green for most of yesterday. Maybe a sign we get a bounce today or Monday before the next leg down. Also, the SPY closed under the lower Bollinger band( $434.40), which rarely happens. Will be watching that $430 handle on weakness for support($430.47 from June)::
Thankfully I added IWM puts on Tuesday and then added some more on Wednesday. I used the gap down yesterday to lock my weekly strikes in for 250% and nearly 400%. I also went and locked in some of my IWM puts for next week for over 100%. Think IWM may come down and test the low $170s next week so will likely hold most/all into next week. It is under the 200dma but it is also under the lower Bollinger band like the SPY and also has closed lower 5 sessions in a row, so would not rule out a bounce at some point, but still think the next leg takes it to $171-172:
I also added some Oct UlTA puts yesterday. As I have been ranting about the past few weeks on my rants and on the watchlist, think ULTA will come down despite strong earnings the last few quarters. Will need to break that $402-403 handle, then $380 comes quick. Will look to close some of the puts out for 100% to cover costs when I get the chance, and ride the rest:
Will need a big move today on LULU for my puts to come back to life. Still think there is an opportunity to play it for downside. The stock closed right at the 50dma once again. If that breaks today, I may look at some spec puts into next week to play for a move to $360 or so:
What a rough session for WW... actually that is an understatement. The stock closed down over 15% on no news. It seemed like shorts smelled blood and then took control. The story has not changed for me. Unfortunately my calls took a hit, which were green yesterday. Not sure I will add anything until it looks like the dust settles.. ie. a close back over $10. I will finally try and have my bull-case on WW out this weekend:
Will be keeping things small today. May look at some lotto calls on names that showed strength yesterday.. ie. ROKU, NFLX, if the market holds this mornings gains. If not, I may look at some chip names for lotto puts... ie. LRCX, NVDA, AMD, and MU.
And here is what I am watching today: ROKU, NFLX, LULU. ULTA, WIX, AMD, MU, LRCX, NVDA, ALGN, SPOT, OKTA, GNRC, VKTX., GLD, GLL, LRCX, NVDA, CMG, QQQ, and TEAM.
Let's have a great day!
-JB