It was an ugly session for markets on Tuesday, with the S&P dropping 1.47%. Asia markets closed in the green overnight while Europe indexes are trading lower this morning. U.S. futures are pointing to higher open as I write this, the dollar and oil are higher while Gold and Yields are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-327/
Markets resumed their fall on Tuesday, with the S&P dropping over 1.4% in an ugly session with nary a bounce. Seems this pull has gotten everyone bearish on Fintwit and in the media, so have to think a big bounce is on the horizon, albeit likely a short one. Shared last week about this historically weak time frame, here it is again:
https://x.com/RyanDetrick/status/1706770451823780205?s=20
The SPY had recouped its lower Bollinger band on Monday only to give it back yesterday and close below it. If stocks somehow find a bid today, that $428.75 area will be one to watch. I am still in the camp of more downside, likely to the 200dma at $415 or so in the next week or two. If that holds, maybe a little rally during Q3 earnings season:
Something to watch here as well on the IWM is the pincher. The closer the ADX and MACD get, the higher the odds of a large reversal coming(the arrow and circle below). Still think low $170s on the IWM first, likely before the week is out:
WW rallied up to $10.86 in the morning yesterday, despite the market weakness, before finding some sellers to close down over 3%. This morning Craig Hallum upgraded the stock to Hold from Sell. It is gapping up near yesterdays highs. Hopefully can hold the gains today and head back over $11. Once it breaks and holds $12 I will add more calls into 2024. If you missed it, here is my piece on WW:
ULTA closed down 2% yesterday and for the fifth session in a row. My puts are up over 300% now. I may look to close some more at the open and hold the rest for the eventual test, and possible break, of that $380 handle:
LULU remains stubborn. It broke under $380 in the morning but failed to hold the level. I may pull the rip cord on the puts today and revisit. Just feels like it may rally hard when the market bounces:
I made a mistake yesterday, for the first time in years. I am usually very good at posting my trades in the chatroom, the #top-picks-room or #speculative-trades room, and then in the private Twitter. Yesterday, I rushed putting an entry and posted it in the #trades-entries-exits channel. I got distracted, then thought I pasted in the main room and private feed but It looks like I did not. I apologize. FWIW I added some NOW puts. By the look of todays open, they will likely be in the red but were up over 100% yesterday. May revisit today if markets reverse the gap. Mega cap tech names were rolling over yesterday, and figured NOW would be a good sympathy play - it trades over 10x's revenues...ect. Could see more continuation:
As I have been mentioning this week, will continue to keep things small. At the same time, may start looking at a few spec weekly calls in some of the oversold names for a relief bounce. Names like ROKU, NFLX, NVDA, and maybe even a name like MELI.
Will try and be on audio today between 11am and 12 noon.
And here is what I am watching today: SITE, LLY, MELI, ROKU, NFLX, WW, IWM, MDB, LRCX, NVDA, NOW, ADBE, AVGO, WIX, AMD, ALGN, SPOT, OKTA, GNRC, VKTX, GLD, GLL, LRCX, NVDA, CMG, QQQ, and TEAM.
Let's have a great day!
-JB