Market Summary: Since the Follow Through Days in early April (April 2nd for the S&P 500 and April 6th for the Nasdaq Composite), the market has slowly proven itself with more consistency. We’ve seen additional accumulation days and many stocks are acting well, specifically in Software, Semiconductors, Biotech, Medical Products and select FAANG stocks. Coming into last week, I was about 50% invested and said to be prepared for 3 scenarios: flat, up, or down. I was hoping for flat but we got up, as the week of option expiration when the market is an uptrend tends to be bullish. I increased my investment levels early in the week mostly based on the strong price action beneath the surface on Monday. I then took some profits later in the week to prepare for the week after options expiration, which tends to see pullbacks. Again, these are just trends I have noticed around OpEx week.
Overall, I would expect some pullback over the near-term because the market needs to back and fill, but I don’t expect the pullbacks to be too severe because so many growth stocks are acting well. In addition, many people are under-invested and still very negative on this market. I encourage everyone to know their own time frame, make their own decisions, and if you are getting tossed around, there is nothing wrong with taking a lighter than normal position to deal with the market’s higher volatility. As always, stay open-minded and focus on price action more than the news.
Topics covered:
1) 0:00 Announcements
2) 0:50 Market Overview/Commentary
3) 2:30 Index Review. Nasdaq Composite, S&P 500, Russell 2000 and NAAIM sentiment.
4) 13:25 Stock Review.
FAANGS: NFLX, AMZN, GOOGL, FB, AAPL
Software: OKTA, AYX, FIVN, CCC, AKAM, ZM, MSFT, IGV
Semis: NVDA, AMD, IPHI, SMH
Biotech: BTAI, ACAD, SGEN, VRTX, NLTX, CCXI, ARVN, KALA, CNST, ADVM, ALNY, PRVB, RCUS, SNDX
Medical Products/Services: DXCM, PODD, CATS
Miscellaneous: SPCE, TSLA, NET, SDGR
5) 37:40 Unusual Option Activity (AYX, ACAD, CATS, TSLA, CCC, BTAI, CCXI, ARVN, SNDX)
6) 41:50 Conclusion/Summary