Week Ending 8/25/2024

This past week was another blessing of a week. Equities closed higher on Friday trading and Friday's gains made up for Thursday's decline. The S&P and the Nasdaq both had their second consecutive weeks in the green and the S&P is less than 1% away from a record close… What will this week bring? The big focus of the week was JPow speaking at the Jackson Hole conference. He said “The time has come for policy to adjust” stating that his confidence has grown that inflation is becoming more sustainable. The market already knew his thoughts on the topic, but it was nice to have some reassurance.

Our plays from last week were nothing short of beautiful. With PANW beating earnings in all categories the stock rose 7% on Monday.

Our main play was CAVA which I stated I had heavy conviction in this one. The Mediterranean food chain beat earnings in all categories and the stock soared 20% on Friday. This was a big money maker and I hope you tailed. I expect them to continue to beat earnings in the following quarters. 

NVDA had another week in the green, closing up about 5% for the week. I am going to continue to watch this, but I believe it is time to sell our calls before earnings. I expect them to beat earnings again, but we have made all the money we can off of these positions and I am expecting a IV crush on those just entering this position.

Looking ahead this next week should be relatively slow with labor day coming up the following Monday. The market will mainly be geared around NVDAs earnings. I am expecting the broader market to follow whatever NVDA does on Wednesday, which will likely be to rise around 3%.

Earnings season is coming to a close unfortunately, but we are still going to swing for the fences here. 

Degen Plays: CRWD, LULU, ULTA Calls

BBWI Puts

I am looking forward to seeing how these go. Happy trading!

 That's all for now folks.