Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 14:25 Conclusion/Summary

Market Summary:
One goal of this product is to keep members on the right side of the market. As I mention in the Seminar Videos, one simple way to do this is to see where the market is relative to the 50-day moving average. If we’re above that level, for the most part the market is healthy. If we are below that level, it’s time to get defensive. For example, since the April 2020 follow through days, I kept members on the right side of the market, presented many strong stocks, and provided strong entry points. In December 2021, a few things started to change. I discussed in several videos how the Fed changed from being very accommodative to more hawkish, how the Nasdaq was starting to break its 50-day, and how there were very few stocks acting well outside of the Semiconductor sector.

I came into the year approximately 40% invested. I was giving the market the benefit of the doubt because it had been so resilient, but I also wanted to be patient and see what would happen when institutional volume kicked in at the beginning of the year. Unfortunately, it was mostly downside volume and I quickly reduced to 10-20% invested. The selling continued into January. Although there were some stocks holding up well in many Defensive sectors, I mentioned I would pass on them because I felt the market was heading lower, and 4 out of 5 stocks move with the general direction of the market. For example, Financials (XLF) were breaking out in January but I passed on this trade because I felt the market would eventually bring everything down, and I even mentioned in many of these videos that crypto would get hit too.

Now, the market continues to slide and we are below the 200-day moving average on the Nasdaq Composite and the S&P 500. I am currently 100% cash and I really don’t care about missing a one or two day bounce. Many traders seemed more worried about missing a bounce than potentially getting hit by more downside. From my experience, I’ve noticed that the market tends to be very vulnerable when we are below the 200-day. In other words, if bad news comes out, it tends to get exaggerated when the market technicals are weak. I don’t mean to depress members, I simply have zero interest in this market. I’ve seen it crush people who do not respect risk and now is NOT the time to be a hero. I will remain defensive and patient, and simply wait for conditions to improve. If you have any questions about this or would like me to review any stocks, please ask them during the next Member Webinar which will be Monday, January 24th at 7:30PM EST. Thank you and enjoy the rest of your weekend.

Unusual Option Activity
1/21/22 Nasdaq 100 ETF (QQQ) opening sale 3000 September $340 puts for $24.42
1/21/22 Impinj (PI) 1000 Feb 70 puts sold to open $2.10
1/21/22 Taiwan Semi (TSM) buyer 1200 May $130 calls $8.25 offer
1/21/22 Advanced Micro (AMD) with 2,500 April $100 ITM calls bought today for $24.50 to $25.60, over $6M
1/21/22 Advanced Micro (AMD) also with 2,500 of the May $100 ITM calls bought for $26.10 to $27.85, over $6.5M
1/21/22 Nvidia (NVDA) with 1000 April $200 ITM calls bought for $44.65 to $45.90, similar to the AMD trades
1/21/22 Tesla (TSLA) with 2000 April $1025 calls opening this morning for $21M adjusting January $910 calls
1/21/22 Facebook (FB) with 1500 May $270 puts bought $11.30 to $11.60 this afternoon
1/21/22 Apple (AAPL) late morning opening seller 12,000 Feb. 11th (W) $165 puts for $5.80
1/20/22 Devon Energy (DVN) with 1200 March $60 OTM calls bought today for $1.05 to $1.13, reports 2-15
1/20/22 Roblox (RBLX) spread sold 2,350 April $65 puts to open at $5.20 to buy 1000 April $75 calls at $12.22
1/20/22 Biotech ETF (XBI) buyer 4000 February $94 puts to open $3.50
1/20/22 Semiconductors ETF (SMH) with 5500 April $245 puts opening $5.40 as Feb. $265 adjust
1/20/22 Microsoft (MSFT) with 5000 March 4th (W) $340 calls bought $2.92 to $3 earlier today
1/20/22 S&P 500 ETF (SPY) with 12,000 Feb. 4th (W) $461 puts bought to open for over $11.5M this morning
1/20/22 Nasdaq 100 ETF (QQQ) buyer 3500 Feb. 4th (W) $364 puts near $5 into strength for $1.775M, same expiration as SPY puts active