I’ve discussed the warning signs over the past few videos and the market continued to show weakness this past week. We saw three more distribution days and many of the growth leaders are breaking down below their 10-week moving averages. I’m not going to get overly bearish but I’m definitely going to remain defensive until market conditions improve. Specifically, I would like to see more stocks setup and the major averages to get back above their 50-days. If you are a longer-term investor, you have to accept that there might be more volatility. At least get off margin and cut some of your weakest performing stocks. If your timeframe is shorter-term, keep your positions light and maintain some cash until the market proves itself. I currently have a few light positions and approximately 90% cash for my clients. I’m trying to remain optimistic that this is one big shakeout until we get past the election uncertainty, but I have to see more consistent signs of the institutions coming back in before I increase my investment levels. Enjoy the rest of your weekend and see you at the next webinar this Sunday, November 1st at 7PM EST.

Unusual Option Activity:
10/30/20 Arcturus Bio (ARCT) interesting spread this afternoon buys 2,000 November $65 calls for $2.43 and sells the December $80 calls for $2.53 to open, earnings on 11-9
10/30/20 FarFetch (FTCH) opening sale 1500 January $27 puts $3.50
10/30/20 Crowd-Strike (CRWD) with 700 November 27th (W) $124 puts sold to open today from $9.55 earlier down to $7.95
10/30/20 Tesla (TSLA) 2400 OTM next week $300 puts active w/ buyers early
10/30/20 Tesla (TSLA) now with some larger Deltas as the Nov. 6th (W) $420 puts opening 4470X for $13M rolling out of Oct. 30th (W)
10/30/20 Atlassian (TEAM) down 8.5% and 7500 November $197.5 calls buy $6.70 to $7.90 to open
10/29/30 Alphabet (GOOGL) ahead of earnings a buyer of the OTM June $2,000/$2,200 call spread 693X1,386 for $2.30 debit
10/29/30 Apple (AAPL) buyers active 4000 Feb. $120 calls today $8.35 to $9, spot where 1000 bought yesterday
10/29/30 Seattle Genetics (SGEN) long-time relative strength leader in Biotech but has tended to be weak after earnings, reports tonight, the Jan. 2022 options unusually active today with 1000 of the $110 OTM calls opening while 3000 of the $45 puts also trading
10/29/30 Amazon (AMZN) with 1400 Nov. 27th (W) $3100 calls opening for $33M into earnings as the $3200/$3300 call spreads adjust and spread versus $3210 now
10/29/30 Zillow (Z) with November $95/$110 call ratio spreads opening 1500X2250
10/29/30 Pinterest (PINS) with 1,500 September 2021 $47 puts sold to open today for $6.90 in a stock replacement following the earnings jump
10/29/30 Sea Limited (SE) interesting trade with earnings around 11-10, selling 500 November $152.5 puts to buy 500 $170/$195 call spreads, net $1.80 debit
10/29/30 Okta (OKTA) into weakness with 775 November $240/$252.5 call spreads bought, also 1500 of the $250 calls active with sellers
10/29/30 Marvell Tech (MRVL) down 9% with their deal for Inphi (IPHI) today and 4500 November $39 calls being bought to open up to $0.92
10/29/30 Marvell Tech (MRVL) calls are up to 13000X
10/29/30 Marvell Tech (MRVL) also with 2,000 February $40/$30 bull risk reversals bought to open for $1.78
10/29/30 Pinduoduo (PDD) with 400 ITM Dec. 4th (W) $110 puts sold to open today for $18 to $17.40
10/29/30 Tesla (TSLA) with nearly 1000 July $350 puts sold to open early near $57.65

Topics covered:
1) 0:00 Announcements
2) 0:45 Market Commentary and Index Review (Nasdaq Composite and S&P 500)
3) 19:25 FOCUS LIST – AMZN, MSFT, ADBE, AAPL, CRM, QQQ (ETF), CRWD, ZS, OKTA, VEEV, NOW, TSLA, Z, MA, SQ, NVDA, ZM, SGEN, GH, ARKG (ETF)
4) 28:20 Watch List of stocks holding up well – Software: TWLO, BL, FIVN, NOW, NET, ZEN
5) 30:30 Watch List of stocks holding up well – General Ideas/Commentary: JD, BABA, PDD, YY, ARCT, SWTX, TWST, LSCC, PACB, KOD, FTCH, QDEL, PKI, TMO, SNBR
6) 35:10 NO SETUPS and Conclusion/Summary