Week Ending 7/28/2024

Last Sunday Biden announced he was dropping out of the election which came as a surprise to no one. Like I said last week this was already priced into the market, but Monday saw a nice day of green anyway.

Earnings season is off to an interesting start with companies like TSLA, CMG, GOOG and VZ already reporting.

TSLA’s EPS missed by 16% while revenue beat by 3% and the stock ended the week down 8%

CMG beat EPS estimates by 7% and revenue by 1% which came as a shock to me due to the recent uproar concerning their mediocre portions. I suppose no publicity is bad publicity in this case. The stock did spike after earnings but ended the week down about 7% due to a bear week.

Degen play: CMG puts

GOOG beat EPS estimates by 2% and revenue by half a percent and ended the week down 6%. I have nothing good to report on Google, but could never short the company.

VZ barely missed on EPS and revenue and ended the week down about 3%.

I suppose market sentiment is stronger for a company like VZ rather that TSLA or GOOG and thats the reason for less volatility.

WSB was full of gain porn showing 0dte spy calls finally making people money and i believe that trend will carry on into the next week.

Degen play: SPY 530 8/2 Put

I also am still bullish on the Russell continuing to rise until September and especially if there is a rate cut.

The middle east always seems to be one bad day from falling apart, but recently that has been escalated through what most would cal war crimes between Palestine and Israel. I wont go too deep into that, but I am predicting the ME will have an effect on the market this week.

Degen Play: VIX Calls

Degen Play: I could also see companies like OXY, MRO and HES rising if anything significant happens this week due to them being oil companies with limited exposure in the ME.

It will be interesting to see how big tech moves this week after a tough week last week. Maybe the market is finally realizing that hearing “AI” on an earnings call is not a proper reason for a 10% spike and with most of the big tech companies reporting this week that will cause added volatility.

Degen Play: Big Tech puts

This week we will see earnings from Microsoft, Apple, Amazon, and Meta, in what could be the biggest week of this earnings this season. This could determine how the market will move up until the election. These four companies account for 20% of the S&P 500. Hopefully the recent AI spending from these companies will have already started to pay off. Investors will also be eyeing capital expenditures to see if the AI spending has even slowed down.

With all of the tech earnings in view next week I am eyeing a different stock…

I believe that DKNG will have a successful earnings call and possibly even announce a stock buy back. I am fairly certain this will happen in the next 12 months, but why not start gambling on it now.

Degen Play: DKNG 08/02 Calls

Thats all for now.