Power Plays Weekly Roundup + Taking Off LLY
February 2, 2024
By Scott Redler
We'll start off today by taking Eli Lilly (LLY) off of Power Plays here.
The stock's gotten a big lift off strong earnings from competitor Novo Nordisk (NVO), and this feels like time to lock in the gain.
The market's basically hanging in for now as we digest a lot of news:
- Today's hot jobs report
- The huge META & AMZN earnings reports
- AAPL's disappointment
Small caps are lagging, which is disappointing to see, and a March rate cut is pretty much completely off the table now.
This market's strength is a good example of why it's better to focus on setups rather than predicting tops and recessions.
This is a very stock-specific tape so be careful out there.
It's a time when you need a scalpel, not a hammer.
So we'll continue being careful in looking for new names.
By the way, if you took the Amazon (AMZN) $165-$170 call spread we suggest yesterday, I'd close it out ASAP to lock it in since the stock is over $170.
Now let's go over our Power Plays:
SPDR Gold Trust (GLD) has been slow to get off the ground and it's definitely been frustrating. I'll remain patient as long as it hangs around here.
Occidental Petroleum (OXY): we added OXY to Power Plays last week to benefit from a possible rotation into energy. It hit $58.99 this week but came in a bit.
Have a great weekend!
Scott Redler Positions Disclosure as of 2024-02-02 at 10.10.59 AM