Topics covered:
1) 0:00 Announcements
2) 0:45 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 7:40 Stock Review – Semiconductors: SMH (ETF), LRCX, AMAT, ON, AMKR, ENTG, MKSI, QRVO, SWKS, CAMT, UCTT, ICHR
4) 12:45 Stock Review – Watch List/General Ideas/Commentary: XRT (ETF), SLX (ETF), X, CLF, SWAV, NARI, VCEL, INMD, MHO, MDC, BZH, XHB (ETF), ITB (ETF), NTLA, FNKO
5) 17:10 Mega Caps: FB, GOOGL, MSFT, QQQ (ETF)
6) 18:20 Conclusion/Summary

Market Summary:
Over the past 6 weeks, we’ve had two different markets. Growth has been in a correction (as seen in the Nasdaq Composite) while other sectors such as value and the “opening up the economy” stocks have been in a strong uptrend (as seen in the S&P 500 and Dow). In my view, the correction in growth had less to do with the rise in interest rates and more to do with the excess bullishness and large supply that came to market via secondary offerings and SPACs.

Today, we had a Follow Through Day in the Nasdaq Composite. I would have liked to see more volume behind the move, but nevertheless, it’s a step in the right direction. From here, I would like to see additional follow through, no distribution, and more stocks setting up. The price action in Semiconductors continues to be strong and hopefully a leading sign for the Nasdaq to follow soon with a move back above its 50-day (possibly next week). Some favorable upcoming factors: 1) April tends to be a strong month (in the past 20 years, it’s been the best month for equities and second best since 1950). 2) Earnings season is coming up. The market will focus less on interest rates and more on fundamentals. 3) Sentiment is coming off its high bullish levels from early February, as seen by the consistent equity put buying last week.

Overall, I feel we will see a rally in stocks over the next 4-6 weeks that could take us to 4200 in the S&P 500. The rally will see technology participate ahead of their Q1 earnings reports, and the favorable low interest rate environment provided by the Fed will continue to act as a strong backdrop for equities. As always, I will take it day by day and update you on the price action in these videos and webinars.

Unusual Option Activity
3/31/21 Nasdaq 100 ETF (QQQ) spreads 7500X in June 30th (Q) expiry selling $294 puts to buy $320/$336 call spreads
3/31/21 Nasdaq 100 ETF (QQQ) also 4500 January $326 calls bought today for $10M
3/31/21 Nasdaq 100 ETF (QQQ) also a buyer 3500 April 23rd (W) $319 calls $7.25
3/31/21 Western Digital (WDC) with 15,000 July $67.50 calls buying $6.50 to $7.25 into the MU report
3/31/21 Seagate (STX) buyers of 3,000 April $74/$80 call spreads for $3.12 ahead of MU earnings tonight
3/31/21 Snap (SNAP) IV rising with 6000 next week $53 calls hot, follows recent Apr. $55.5 calls 5000X
3/31/21 Snap (SNAP) also 2000 Apr $51 calls bought $3.50, Apr $61 far OTM calls bought $0.81
3/31/21 Snap (SNAP) June $60 calls seeing 900X active with buyers in early afternoon
3/31/21 Teladoc (TDOC) with 300 January 2023 $165 puts sold to open $35.50, popular strategy into recent weakness
3/31/21 ON Semi (ON) with 4000 May $40 calls bought $3.50 to $3.60
3/31/21 On Semi (ON) also with April $39 calls bought 5500X
3/31/21 Taiwan Semi (TSM) buyers of the April $126 calls for $1.15, 2400X
3/31/21 Lam Research (LRCX) with 575 April 9th (W) $600 calls bought $11.85 to $12
3/31/21 Tesla (TSLA) with 10,000 April $730/$750 call spreads opening as the $800/$850 close 26,500X
3/31/21 US Steel (X) with 1000 April 23rd (W) $24 calls bought up to $4 to open
3/31/21 US Steel (X) also with 4000 April $34 OTM calls bought $0.63 to $0.68
3/30/21 CrowdStrike (CRWD) buyers of 3000 June $185 calls up to $13.90.
3/30/21 EXP World (EXPI) with 650 May $45 calls bought up to $6.70
3/30/21 Square (SQ) with 1000 June 2022 $185 puts sold to open $29.85
3/30/21 Teladoc (TDOC) with 430 October $155 puts sold to open this afternoon for $16.30, follows put sales active last week.
3/29/21 DraftKings (DKNG) with 10,000 May $70/$55 bull risk reversals open for $0.02 credit
3/29/21 Disney (DIS) with 2000 May $195/$180 bull risk reversals trading into weakness for net credits
3/29/21 Zillow (Z) the January 2023 $75 puts sold to open today for $12, over 850X
3/29/21 Netflix (NFLX) with 1000 April 23rd (W) $507.50 calls bought $27 to $28.10
3/29/21 Kopin (KOPN) with 2500 January 2023 $25 far OTM calls being bought $1.30 to $1.55 range
3/29/21 Snowflake (SNOW) with 9300 April 200 puts sold to open $2.70 into day lows
3/29/21 Snap (SNAP) buyers here 5500 April $55.50 calls $1.05 to $1.08
3/29/21 Marvell (MRVL) buyer 1300 August $52.50 calls $2.90