Welcome to the latest edition of Dog Bytes!
We have mixed markets around the world as Europe is lower with SPX futures after underwhelming reports from DELL, HPQ, and, CRWD.
Asia is green with the Hang Seng +2.3% and Shanghai +1.5%.
SPX futures are -5 after making a new all-time high at 6025. We'll see if we hold 5992ish to keep upper commitment.
Now let's dig into some of our focus names, with a big focus on the January Effect.
FYI, the January Effect is when beaten down stocks and sectors rally into year-end
In recent years, the January Effect has started earlier and earlier due to trader anticipation -- just like "Black Friday" deals starting right after Halloween.
I bought some FXI $29.85 and $30.85 calls for 1/17 for the January Effect. China didn't go down on Trump Tariffs, so I thought it was a good sign for an entry with FXI way off the October high at $37.50.
I'm also using calls on LCID, TLRY, BB, and PLUG for the January effect.
These are all high-risk situations where I can lose 100%, or win big.
That's the name of the game.
Bitcoin has been the #1 theme in Power Plays over the past 2 months. I did get bigger in IBIT yesterday though I'm going to be a bit more cautious until I see better stability in the chart.
NFLX proved that opinions can hurt if you don't respect the action. When it reclaimed $816 Monday, shorts had to adjust fast. It hit $890+ yesterday! It's extended now.
NVDA pushed above $149.76 and failed to hold it, giving this an active sell signal post-earnings. On Monday it broke $140 to see the 50-day with a low of $135.67. It's below that this morning on DELL's disappointing earnings. We'll see if it makes a low in the first 5-15-30 minutes.
SMH has been lagging since the July top. So far, it hasn't been a "Headwind" for tech or the tape. $237 is a big spot for the SMH. You can see a defined H&S pattern here. A hard move below the neckline will be hard for tech and the market to ignore.
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