Stocks rallied yesterday, with the S&P adding .58%. Asia markets closed higher overnight while Europe indexes are in the green this morning. The US dollar and Yield are lower while Oil and Gold are higher.
And this is what UPB is reading this morning :https://www.optionmillionaires.com/morning-reads-329/
Markets opened lower on Thursday, chopped between gains and losses after the open, then found a bid and traded higher for the rest of the session. Relief rally or the start of a longer-term bounce? I think the former but looks like another green start today. PCE data came in mostly as expected and at 2 year lows pushing futures higher. $432.27 was the high this week, so if markets continue to be bid after the open, should provide some resistance, Still have the possibility of a government shutdown looming come Sunday. Should feed the bears with headlines over the weekend, though I think most of that is baked in already. Either way, open to lotto calls today while still being skewed for downside in the coming weeks:
Gold continued its slide yesterday, breaking under $1890 and trading down to $1874 in the morning. I used the move to close some of my GLD puts for over 100%. I also went and added some JDST calls. Gold found some support in the afternoon and closed $10 off its lows and is higher this morning. Gold is down over 3% this week. Still think a move to $1850-$1852 is coming in the next week or two so will hold the rest of my GLD puts and the JDST calls. May actually look for more GLD puts if it reverses this morning's gains:
Blue Apron was acquired for $13 a share this morning. The irony that two names I traded a lot the past year or two ( $ICPT being the other) were acquired this week:
https://investors.blueapron.com/press-releases/2023/09-29-2023
My piece from last year, really thought APRN had some potential:
https://investors.blueapron.com/press-releases/2023/09-29-2023
Anyway, good that I don't have to look at it anymore...
ULTA traded down to $375 yesterday after the LULU/PTON deal. I think the deal is a net negative for LULU. I went and added more puts into next week. Sure enough, the stock found a bid and close up near $379 yesterday, but down .04% on the day. This morning it is gapping higher after NKE beat lowered expectations. Still think the trend is lower on LULU so will hold the puts pending any move over $393 or so.
ULTA also rallied yesterday, closing up over 1%. Just like LULU, think the trend is still down and will hold the last of my puts:
WW was volatile again yesterday, trading in an over 6% range as it tested $11.47 in the morning only to give it all back and close down over 2% at $10.83. Still like the setup here but want to see it close back over $11 today:
EDIT received an upgrade this morning with Stifel taking its PT to $17 from $9 and raising its rating to Buy from Hold. EDIT has had a rough road the past few years and has changed its leadership. Maybe the market starts appreciating it in the coming weeks. I may look for some spec calls today to play for a move north of $9-10 in the coming month or two. The stock has been pummeled as of late and also sports an 18% short interest, could see a squeeze:
Another expiry day, this time Quarterly where the folks at Goldman Sachs says this is the most notional value of puts expiring they have ever seen:
Should be a fun one today. The S&P is down .44% so far this week. If it can't recoup those losses today, it will be the 4th week in a row of red. Still biased for more downside in the coming week or two until earnings season kicks off mid-october. Will be keeping things small today but may look at some lotto trades in ROKU, NFLX, NKE, NOW, MDB, and others.
And here is what I am watching today: NKE, EDIT, NFLX, NOW, MDB, DUST, JDST, GLD, GLL, SITE, LLY, MELI, ROKU, WW, IWM, LRCX, NVDA, NOW, ADBE, AVGO, WIX, ALGN, SPOT, OKTA, GNRC, VKTX, LRCX, NVDA, CMG, QQQ, and TEAM.
Let's have a great day!
-JB