Stocks rallied for the 2nd session in a row, with the S&P adding .66% on Thursday. Asia markets finished in the green overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-95/
Stocks made it back to back sessions of gains yesterday and the SPY was able to close back above that $400 handle. There was no catalyst to speak of outside of the Dollar falling. Prices at the gas pump also continue to drop. Another bounce before the next leg down? Certainly possible, but would be a good sign here if we can close back above the 50dma on the SPY heading into the weekend:
It was another strong session for APRN yesterday, closing up nearly 17% and breaking out of its wedge. Would want to see it hold $7.50 or so and think $10+ will come quickly if it does. I locked some of my October calls in for some profits and may look to close a few more and then ride the rest. Will need a bigger move for my September strikes to start paying:
PETQ closed slightly in the green yesterday but over $11. Really love this name for a move to $15 or so in the coming weeks:
Hopefully premiums start ramping here and I can take some of my calls off for 100% to cover costs and ride the rest:
TNDM has been absolutely pummeled in 2022, with its last earnings report being the proverbial 'nail in the coffin'. Their CFO spoke at the Wells Fargo healthcare conference yesterday and spoke of a possible change of momentum in August in regards to sales/shipments. The stock spiked and closed up over 15%. Could be the start of a move into the mid-high $60s so may look to add some Sept and/or Oct calls today:
I missed EVH again yesterday and the stock broke into all-time highs. Think it will really get some legs over $40 so will be watching those Oct $45s this morning for a possible entry:
I locked some of my AMLX calls in after the open yesterday with the stock trading around $32. It then found some pressure to close at $26, although still up 50% for the day. The FDA should be announcing their ruling on their ALS drug by September 29th so will likely hold the rest of my calls into that date and may look at other speculative calls. If approved think it will trade north of $40 and possibly higher:
RH reported decent earnings after the close yesterday and the stock is up slightly in the pre-market. Lucky not to add anything on either side. May look at some lotto positions on the name. If it fails to hold gains may actually look at some puts for a move to $240 or so:
Will also be watching ZS, TWLO, SPOT, CMG, and ROKU for some speculative lotto trades today.
Here are the analyst changes of note for today:
Zscaler price target raised to $210 from $185 at Needham |
| Needham analyst Alex Henderson raised the firm's price target on Zscaler to $210 from $185 and keeps a Strong Buy rating on the shares after its Q4 results and guidance. The company is benefiting from a robust expansion of its new Products - including ZDX, Cloud Workload and Posture - as we well as from a 5-times increase in Sales through Cloud Marketplaces such as AWS and Azure, the analyst tells investors in a research note. Zscaler's Federal business is also seeing sharp growth as the company's FedRamp High status is driving rapid adoption and large contract wins, Henderson adds |
Nike price target lowered to $121 from $130 at Wedbush |
| Wedbush analyst Tom Nikic lowered the firm's price target on Nike to $121 from $130 and keeps an Outperform rating on the shares ahead of the Q1 earnings report on September 29. While Nike is one of the strongest brands and companies in his coverage, it is not immune to macro challenges, Nikic tells investors in a research note. The firm's "Just Kickin' It" report shows that for August, 22 products that sold out are trading at premiums in the resale market, which is down from last August's 25 "hot" launches. If Street numbers do come down on the next print, Nikic believes that the stock could come under some near-term pressure |
| Zscaler price target raised to $210 from $200 at Stephens |
| Stephens analyst Brian Colley raised the firm's price target on Zscaler to $210 from $200 and keeps an Overweight rating on the shares following Q4 results and FY23 guidance that beat expectations. Demand for Zscaler's platform remains strong and resilient given the rising importance of Zero Trust and SASE, which are top CIO priorities, said Colley, who adds that this quarter reinforced his confidence in the durability of Zscaler's secular growth story |
| RH price target lowered to $375 from $400 at Jefferies |
| Jefferies analyst Jonathan Matuszewski lowered the firm's price target on RH to $375 from $400 and keeps a Buy rating on the shares. He was not anticipating a third cut to annual guidance, but the after-hours trading in RH shares "appears to appropriately recognize postponed Gallery debuts as a transitory factor," Matuszewski stated. The company's Q2 results beat expectations and initial results for RH Contemporary are "promising," added Matuszewski, who sees minimal downside given that RH is trading closer in multiple to aspirational brands versus "true luxury brands |
| Regeneron upgraded to Hold at Jefferies after 'very strong' high-dose Eylea data |
| As previously reported, Jefferies analyst Akash Tewari upgraded Regeneron to Hold from Underperform with a price target of $675, up from $536, following what he described as "very strong" high-dose Eylea data. The results for patients on Q16W looks "encouraging" and safety looks "clean," said Tewari, who is increasing his peak sales estimate for high-dose Eylea to $11B. He is also increasing his peak sales estimate for Dupixent to $16.3B after positive PN data and strong Q2 trends, the analyst note |
| Nvidia risk/reward at $135 'extremely attractive,' says Evercore ISI |
| After further digesting the Nvidia announcement around U.S. Government restrictions on China activity and the subsequent news that the government has granted exemptions for Nvidia to continue its development of its H100 offering in China and continue supporting U.S. customers of A100 through China-based contract manufacturers through March 2023, Evercore ISI analyst C.J. Muse said he believes that Nvidia will likely be able to meaningfully offset downside risk through alternative product offerings and potential license approval. While he is revising down his Q3 revenue forecast by $250M and reducing the out quarters by $200M per quarter to de-risk his model from this impact, Muse thinks any impact arising from this dynamic will be largely transitory and views the risk/reward at $135 as "extremely attractive for investors with any sort of duration." He reiterates an Outperform rating and $225 price target on Nvidia shares |
| Lovesac price target lowered to $97 from $124 at DA Davidson |
| DA Davidson analyst Tom Forte lowered the firm's price target on Lovesac to $97 from $124 but keeps a Buy rating on the shares. The company's Q2 earnings again illustrated the disruptive nature of its business and, when comparing its results to its home furnishing peers, Lovesac looks to be taking significant market share, the analyst tells investors in a research note. Forte adds that the 12% post-earnings decline in the stock was due to the timing of revenue recognition on "open-box" inventory and the short-term impact on EBITDA margin from management's decision to expand its fulfillment center-capacity, stating that he would take advantage of the selloff and buy stock at current levels |
And here is what I am watching today: RH, LOVE, TNDM. TNDM, EVH, ZS, TWLO, SPOT, APRN, PETQ, AMLX, REGN, SAGE, and CMG.
Let's have a great day!
-JB