Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 13:20 Conclusion/Summary

Market Summary:
The best way to summarize my market stance right now is to stay defensive! In recent videos and memos, I talked about leaning defensive, but unfortunately the warning signs are increasing and it’s best to stay defensive until the volatility and selling calms down. The positives I mentioned recently are starting to go away. Specifically, the main indexes continue to show weakness and most are below their 50-day moving averages. The Fed was on our side until Fed Chair Powell’s testimony this week. He changed his tone from being market friendly to fairly hawkish. It doesn’t mean the Fed will raise rates, but the market is clearly respecting his harsher language this week. As I mentioned in Tuesday’s memo, the distribution days are starting to add up. Most importantly, many growth stocks are breaking down.

Conclusion: Stay defensive! By defensive, I mean reducing exposure and sticking to a loss cutting policy. Minimize new buys and if you are going to trade, I suggest using lighter than normal positions. I do not review many stocks in this video because one of the goals of this product is to keep you on the right side of the market, and right now, the market is telling me to protect capital. I’m not going to force ideas when the wind is not at our back. Again, please be patient until the volatility calms down and we see signs of the institutional selling slow down. Good luck for the remainder of the week.

Unusual Option Activity
12/1/21 Affirm Holdings (AFRM) opening sale 550 Jan. 2023 $105 puts for $21.20
12/1/21 Affirm Holdings (AFRM) also with 650 Jan. 2023 $250 far OTM calls bought $10.60
12/1/21 Unity Software (U) large opening sale 500 May $150 puts $19.30 to $18.90 this afternoon
12/1/21 Micron (MU) breaking out strong with buyers in Dec. $88/$100 call spreads 3000X
12/1/21 Microchip (MCHP) with 2000 OTM Jan. $100 calls bought aggressive $1.55 offer
11/30/21 Tesla (TSLA) buyers paying $89-$94 for March $1350 calls trading 7850X opening twenty minutes for $75M
11/30/21 Palo Alto (PANW) opening sale 1000 Jan. 2024 $430 puts for $40.50
11/30/21 Palo Alto (PANW) also a buyer 370 March $550 calls $44.20 for over $1.75M
11/29/21 Marvell Tech (MRVL) late day buyers of 7000 January $75 calls as Dec. $70 adjusted
11/29/21 Coinbase (COIN) late day opening sale of 2450 March $200 puts $4.70 to $4.60
11/29/21 Unity Software (U) opening seller 400 July $120 puts for $6.40
11/29/21 Seattle Genetics (SGEN) opening seller 250 December 2022 $170 puts $26.30 to $26
11/29/21 S&P 500 ETF (SPY) with 2850 May $492/$428 bull risk reversals opening for a net credit of around $1.7M
11/29/21 Taiwan Semi (TSM) buyer 750 July $125 calls $9.35 to $9.45
11/29/21 Affirm Holdings (AFRM) large opening sale of 1600 January 2024 $120 puts for $40.50
11/26/21 Coinbase (COIN) with 900 February $300 puts opening $34.09 as the $270 adjusted strikes