Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 11:40 Stock Review – Mega Caps: AMZN, AAPL, MSFT, NVDA, TSLA, PYPL, QQQ (ETF)
4) 14:00 Stock Review – Software: CRWD, ZS, OKTA, APPN, FSLY, BILL
5) 16:20 Stock Review – Semiconductors: AMD, UCTT, COHU, IIVI, TSEM, SMH (ETF)
6) 18:30 Stock Review – Medical Products/Biotech: SDGR, HALO, SWAV, NVCR, ADPT, ALGN, STAA, PGNY, INMD, NARI
7) 23:30 Stock Review – General Ideas/Commentary: Z, ND
8) 25:00 Current Setups – None
9) 25:00 Conclusion/Summary

Market Summary:
With the recent increase in volatility, this is just a reminder to be very disciplined and patient right now. As I mentioned in last weekend’s video, the two main positives are the Fed and the resiliency of this market. Two main negatives include the recent excess bullish sentiment and the Nasdaq Composite was a little extended coming into the week. I reconcile the positives and negatives by defaulting to the price action of stocks. For the most part, there have been very few setups over the past few weeks. By setups, I mean stocks offering strong (tight) entry points or stocks offering decent pullbacks buys. Over the weekend, some decent setups showed up but the majority of them failed so far this week (such as DOCU, NET, and FTCH). When this happens, I view it as information that the market’s needs time. While running my screens so far this week, I’m back to the same problem of finding very few strong entry points.

If you are short-term trader and you’ve been taking profits into strength, I would wait for any pullback buys. If you want to trade anything, I suggest using lighter than normal positions until the dust settles. If you are a longer-term investor, you might have to sit through some volatility over the near-term but still stick to your loss cutting discipline if any stocks decisively break their 10-week moving averages by Friday’s close. If you are heavily invested, it wouldn’t hurt to raise so cash, especially if we get some strength to sell into towards the end of the week. Again, I’m not bearish. I’m simply defensive and suggesting some patience right now. Whatever you decide, I suggest using lighter than normal positions if you plan on trading over the near-term. Good luck for the remainder of the week.

Unusual Option Activity
1/27/21 PayPal (PYPL) with 750 September $200 puts selling to open down to $16.90
1/27/21 Zillow (Z) another 2000 January $125 puts sold to open $25.10
1/27/21 FarFetch (FTCH) the March $60 puts bought for $9.00 today, over 1300 trading
1/27/21 Etsy (ETSY) with 1000 June $115 puts sold to open $3.90
1/26/21 Upwork (UPWK) with over 1000 March $42.50 puts sold to open today down to $4.50
1/26/21 Virtu Financial (VIRT) buyer of 2000 June $30 calls to open $1.25 offer
1/26/21 Salesforce (CRM) buyer 1000 April $210 puts $9.15
1/26/21 Zillow (Z) opening sale of 1,000 Feb. 12th (W) $131 puts for $3.80 to $3.75, targeting 2-10 earnings
1/26/21 Activision (ATVI) with 1,000 April $92.50 calls opening for $6.20 to $6.35, adjusting back some $97.50 calls
1/26/21 Semiconductor ETF (SMH) with a buyer of 11,000 March $220 calls for $23.25, the February $85 calls bought on 11/18 adjust
1/26/21 Chegg (CHGG) buyers of the April $105 calls for $10.20 to $10.30 today, 425X
1/26/21 Aspira Women’s Health (AWH) unusual action with 4,200 February $7.50 calls bought up to $1.40 to open
1/26/21 Lemonade (LMND) spread today is buying 1,000 February $160 calls for $14.40 and selling the March $220 calls for $8.15
1/26/21 Virgin Galactic (SPCE) buyer of 2000 March 5th (W) $40 calls into the highs for $5.80 to $6
1/25/21 Facebook (FB) block of 1000 April $270 puts sold to open at $18
1/25/21 Upwork (UPWK) the March $45 calls with buyers today 500X from $5.65 to $5.90
1/25/21 Fiverr (FVRR) with 400 July $150 OTM puts opening $12.50 to $13.90
1/25/21 Crowd-Strike (CRWD) with 1,250 July $135 puts bought $3.50 to $4.05 today
1/25/21 Taiwan Semi (TSM) buyer 1800 Feb. 26th (W) $140 calls $3.10 to $3.15
1/25/21 Lilly (LLY) with 1300 February $210 OTM calls bought $6.45 to $6.70