Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:25 Stock Review – Energy: DVN, OXY, MRO, MPC, VLO, EQT, APA
4) 11:20 Stock Review – Watch List/General Ideas/Commentary: CELH, PRCT, LNTH, HALO, EA, WDC, LLY
5) 14:00 Conclusion/Summary

Market Summary:
Based on some emails and questions I’ve received during recent webinars, I would like to clarify my market stance as simply as I can: We are in a downtrend and I am not expecting any SUSTAINED upside until the Fed is done with their rate hiking cycle. In this video, I try to answer some other questions I’ve received. The first one is: Will we still see some countertrend rebounds along the way? The answer is of course yes, but again, they don’t seem to be anything sustained. For example, I recently increased my exposure from approximately 10% to 50% invested because I was expecting a rally into the S&P 500’s 50-day moving average. Over the past two days, I did not like the price action beneath the surface and, as a result, I reduced my exposure back down to approximately 10% invested. I did this by getting rid of some positions completely and by also reducing position size on some stocks. For example, by reducing some stocks from a 3% position down to a 1% position (of the overall portfolio).

The conclusion is the same: Stay defensive and be patient. Don’t forget the major overhang on this market is the hawkish Fed. They have made it clear that they want to fight inflation, and unfortunately, that will keep the market from any sustained upside. As always, I will remain open-minded, but the recent price action is telling me to stay defensive and keep a larger than normal cash position. As always, do what works for you and your investment objectives, but if you decide to trade, PLEASE keep your positions light. If you have any questions, you can ask them during the next webinar which will be this Saturday, June 4th at 11AM EST. Thank you and good luck for the remainder of the week.

Unusual Option Activity
6/1/22 S&P 500 ETF (SPY) over 20,000 July $388 puts opening for $17M midday
6/1/22 Biotech ETF (XBI) 1500 Jan. 2024 $65 puts sell to open for $11.85
6/1/22 Tesla (TSLA) with 2000 August $770 puts bought to open $104.50 to $109.55 for over $24M
6/1/22 Occidental (OXY) opening seller 1575 Sep. $70 calls $9.10
6/1/22 EQT (EQT) buyer 2600 August $50 calls for $5.25 as June $43 puts sell to open 2500X as well
6/1/22 Marathon Oil (MRO) with 6000 June 24th (W) $33 calls sold to open
6/1/22 Diamondback (FANG) opening seller 1500 September $132.65 puts for $8.60
6/1/22 ZIM Shipping (ZIM) buyers active for 3000 Dec. $80 calls this morning $5 to $5.10
6/1/22 ON Semi (ON) size buy of 3250 Sep. $60 puts at $6.50 offer
6/1/22 Amazon (AMZN) buyer 270 Oct. $2950 calls $99.85
6/1/22 Nvidia (NVDA) seller to open 1000 June 24th (W) $185 puts $11.40 to $11.25
6/1/22 Netflix (NFLX) opening sale 1625 January 2024 $270 calls for $26.50
5/31/22 Microsoft (MSFT) buyers of 1000 June 10th (W) $270 puts for $6 to open into early weakness
5/31/22 EQT Corp (EQT) trade opens 3000 January $65/$25 bull risk reversals for $2.34
5/31/22 Devon (DVN) buyers of 1000 January $100 calls for $5.20
5/31/22 Occidental (OXY) opening seller 3000 July 1st (W) $80 calls $2.20 into early strength
5/31/22 Exxon (XOM) buyers active for the September $115 calls for $1.88, over 1150X
5/31/22 Zillow (Z) buyer 800 August $40 calls $5.25 to open
5/31/22 Skechers (SKX) big buyer 4000 July $41 calls for $1.40 to $1.45
5/31/22 S&P 500 ETF (SPY) opening buyers of 17,500 June $391 puts this morning at $3.80