Tech delivered strong earnings last night and just when it looked like retail was dead, Walmart (WMT), along with a few other names, delivered reports strong enough to get buyers excited. We're seeing a mix of relief along with traders jumping into oversold names looking for a multi-day bounce or some recovery.
Salesforce.com (CRM) continues to impress, but the stock traded right to the short leg of the call spread on the earnings trade consideration. There's no need to stick around if still in this one. A pure directional play is not one to test patience. Save that test for ratio put spreads like Target (TGT) or Home Depot (HD). I still have some HD ratio put spreads, but it looks like the drop there has fizzled. It's still worth a look on the long side, though, if you want retail exposure.
Dick's Sporting Goods (DKS) delivered a decent report but warned, as I had expected. While the stock managed to shake off the warning early, I wouldn't hurry into this one. I see this as a prime example of a relief bounce, or even a dead-cat bounce.
If you follow Tesla (TSLA), you already know about the $2 billion cash raise. As has become customary, CEO Elon Musk is taking part, which feels like nothing more than a PR move to soften the blow of dilution. He and Goldman Sachs probably want to bury the whole "GS upgrades TSLA" in the premarket yesterday, then serve as front bookrunner that afternoon on the secondary. It's dirty pool in my book. We all know it, but the powers that be need the games in the pool hall, so they will allow it.
Earnings season is winding down, so we are back to the Fed's work, data, and I expect to see oil chatter pick up again. I plan to check out recent earnings reports over the weekend and hunt for bullish flags on those names that reported well and bearish flags for the opposite. We should be able to compile a solid watch list from there.