Topics covered:
1) 0:00 Announcements
2) 0:50 Market Commentary
3) 15:45 Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
4) 18:30 NEW FOCUS LIST – Medical Products: SWAV, NARI, VCEL, INMD, SPNE, ORGO
5) 20:45 NEW FOCUS LIST – Semiconductors: SMH (ETF), UCTT, COHU, SWKS, CRUS, AMAT
6) 23:00 Stock Review – Watch List/General Ideas/Commentary: CELH, APPS, LYFT, UBER, ALGN, SQ, HYRE, BZH, CCS, MTH, RADA, RCUS
7) 27:50 Conclusion/Summary

Market Summary:
Around the end of March, I mentioned that the Nasdaq would head back to new highs and the S&P 500 would make a run to 4200. Both of those happened in April, but the problem is many growth stocks did not act well during that time. One of two things should happen from here. Either growth stocks stabilize, move higher, and lift the rest of the market higher, or the recent weakness beneath the surface will bring the rest of the market down. Over the next two months, I am leaning towards the latter scenario to happen. My feeling is the gains in April will be given back over May and June and the market will have a minor 4-6% correction.

In this video, I outline my reasons for this call. They include: 1) The weak reaction in many Mega Cap stocks after reporting strong earnings. It showed me that big institutions were selling into strength. 2) May and June (especially June) are traditionally difficult months. 3) A continued rise in the 10-year yield could bring down valuations in tech stocks. 4) Market participants could sell stocks to raise money ahead of the May 17th tax deadline. Other reasons include: high bullish sentiment, continued talk of capital gains increases, and the market’s normal correction every few months down to its 50-day moving average. Please keep in mind that I could be wrong on this call. I will always be flexible with my approach and notify you if the price action improves in growth stocks.

From here, I suggest using lighter than normal positions, minimizing new buys, getting off of margin (if you are on margin), and sticking to a loss cutting discipline on any stocks that have decisive closes below their 10-week moving averages. The main point I want to make is that I am not bearish, I’m just cautious over the next two months. I don’t see great risk/reward at this time and I want to have cash available to jump on some positions if we see a minor correction in the market. The good news is there are many stocks that continue to act well and I discuss some of them in this video. I simply think that patience is required before some of these stocks see consistent upside. If you have any questions, you can ask them during the next webinar which will be Sunday, May 2nd at 11AM EST. Thank you and enjoy the rest of your weekend!

Unusual Option Activity
4/30/21 Nasdaq 100 ETF (QQQ) May 28th (W) $344 calls active into morning weakness with 15,000X being bought for over $7.5M
4/30/21 Booking Holdings (BKNG) with 175 June $2,450 calls bought today for $105 ahead of earnings next week
4/30/21 Square (SQ) opening sale 300 September 2022 $200 puts $27.25
4/30/21 Staar Surgical (STAA) with 500 May $140/$130 bull risk reversals bought today for $1
4/30/21 Snap (SNAP) buyers of June 11th (W) $67 calls above $2.50 for 1185X
4/30/21 Snap (SNAP) also with 1,750 May 14th (W) $55.50 ITM calls bought for $6.75 as some positions adjust
4/30/21 Applied Materials (AMAT) large spread sells the July $115 puts to buy the $140/$155 call spread for $1.19, 4800X
4/30/21 Advanced Micro (AMD) with 1600 December $105 calls sold to open today for $4.15
4/30/21 Crowd-Strike (CRWD) with 4000 May $245 calls sold to open today around $0.85
4/29/21 Alphabet (GOOGL) seeing 1720 August $2,200 calls bought for $260.40, near $45M position, as the June $1,800 calls close and adjust higher
4/29/21 Facebook (FB) with 2000 August $360 calls opening $9.92 with May $305 adjustments
4/29/21 Align Tech (ALGN) with 1,500 October $610 calls bought from $60.20 to $62, adjusting some May calls out today
4/29/21 MasterCard (MA) with 4,000 August $390 calls bought for $20.05, closing 2,000 October $390 calls and adjusting back
4/29/21 Nike (NKE) spread sells 3000 August $120 puts to buy the $140/$155 call spreads
4/29/21 Mosaic (MOS) jumps as another 39,500 June $40 calls trade
4/29/21 Alphabet (GOOGL) seeing 1720 August $2,200 calls bought for $260.40 as the June $1,800 calls close and adjust higher post-earnings
4/29/21 Service Now (NOW) weak after results but size buyer stepping in here for 4,500 August $530 calls from $31.20 to $34.50
4/29/21 Lyft (LYFT) with 1275 January 2023 $57.50 puts sold to open $11.95 to $12.40
4/29/21 Rada Electronics (RADA) with unusual 2375 July $12.50 calls hot with buyers today, earnings 5-11
4/28/21 Snap (SNAP) with 7000 deep ITM June $50 calls active with buyers late day