Topics covered:
1) 0:00 Announcements
2) 0:15 Review of charts and guidelines
3) 5:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
4) 11:30 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), APA, CLR, EOG, DVN, FANG, SM, HES, HP, PSX, WHD
5) 16:00 Stock Review – Semiconductors: SMH (ETF), ACLS, ON, AMD, NVDA, TSM
6) 18:00 Stock Review – Watch List/General Ideas/Commentary: BROS, MA, AAPL, ACAD, NMM, EXPE, BKNG
7) 22:20 Conclusion/Summary

Market Summary:
In this video, I review the positives and negatives in the market. One positive is that after the Follow Through Day (FTD) on Monday January 31, we’ve seen very little distribution. The accumulation was followed up today with another “follow through” type day on the Nasdaq Composite. In addition, the Russell 2000 had a Day 8 FTD on Tuesday. The biggest negative is that these indexes are still below their respective 200-day moving averages. So, the big question is have we bottomed? Or are we just going to run into some key moving averages before another leg down? My gut says the latter, but I will of course be open-minded. The biggest factor that will help answer this question is whether stocks setup over the next few weeks.

Whenever there’s a mixed picture, I always say there’s nothing wrong with meeting half way. In other words, you don’t have to be fully invested. I am currently 40% invested in some of the strong stocks I discuss in this video. That way, if we continue higher, I can hopefully participate and add to my exposure if needed. If we head lower, the large cash position will hopefully help reduce the downside, and I can always reduce exposure if needed. Conclusion: I still it’s worth being defensive and using lighter than normal positions until the market proves itself a little better. Again, be patient and wait for a clearer picture. Thank you and good luck for the remainder of the week.

Unusual Option Activity
2/9/22 Booking Holdings (BKNG) with buyers of 400 March $2600 calls from $115 to $123.10, nearly $5M ahead of 2-23 earnings
2/9/22 Microsoft (MSFT) with 2500 January $305 puts sold to open today for over $8M premium
2/9/22 Microsoft (MSFT) also with 2900 March 2023 $310 puts sold to open for $10.5M premium
2/9/22 Visa (V) with another 2000 May $235 calls being bought $11.70 offer
2/9/22 Amazon (AMZN) buyer of 1000 January $3800/$3900 call spreads
2/9/22 Biotech ETF (XBI) seeing 1700 June 2023 $95 puts sell to open for $12.80
2/8/22 Taiwan Semi (TSM) with 2300 ITM May $100 calls opening $24.20 to $25.10
2/8/22 Taiwan Semi (TSM) also with 4000 April $125 calls now being bought $6.25 to $6.40
2/8/22 Energy ETF (XLE) buyer 2250 January 2024 $70 calls for $9.10
2/8/22 Acadia (ACAD) buyers active again in the March $20 ITM calls today from $6 to $6.10, over 1000X
2/8/22 Apache (APA) buyer of 2000 March $35/$42.50 call spreads today for $1.43 as some February positions adjust
2/8/22 American Express (AXP) trading 1100 April $200/$170 bull risk reversals for $2 debits
2/8/22 ZIM Shipping (ZIM) 1200 March 25th (W) $80/$90 OTM call spreads for $1.60, targeting 3-21 earnings
2/8/22 Zscaler (ZS) with 200 August $280 ITM puts being sold to open for $48.80, earnings 2-24
2/8/22 ON Semi (ON) with 500 July $75 puts sold to open today for $13.90 to $13.80
2/8/22 Qualcomm (QCOM) with 15,000 June $165 calls opening today for $36M as the March $160 calls from 11/30 adjust out
2/8/22 LAM Research (LRCX) late day size buyer 400 April $585 calls for $35.45
2/7/22 Broadcom (AVGO) with 500 April $500 puts sold to open $9.80
2/7/22 CF Industries (CF) with 10,291 March $90 calls sold $0.65 to open willing to get called away
2/7/22 CF Industries (CF) also with a buyer of 500 August $85 OTM calls at $5
2/7/22 Palo Alto Networks (PANW) with 850 March $500/$600 call spreads bought for $34.70 to open
2/7/22 Visa (V) with 1000 September $220 calls bought today $23.50 to $24
2/7/22 ACADIA Health (ACAD) buyers of 1,185 March $20 ITM calls for $5.80 to $6.10. Follows nearly 3,000 Feb $26 calls bought last week