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