Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:10 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), USO (ETF), DVN, OXY, MRO, MPC, VLO, EQT, APA, DINO
4) 13:50 Stock Review – Watch List/General Ideas/Commentary: WDC, CELH, HALO, PRCT, SWAV, LNTH, ALB, LTHM, CHPT, ENVX, ZIM, CYTK, SMCI, SKX, XBI (ETF)
5) 21:15 Conclusion/Summary

Market Summary:
The S&P 500 has been consolidating in a range the past two weeks. Resistance on the upside is near the 10-week moving average (approximately 4170) and recent support has been the 21-day moving average (approximately 4080). There are many events over the next week that will lead to higher volatility and likely move us out of this range. These events include: Friday’s CPI (inflation) report, next week’s regular cycle options expiration, the VIX expiration on Wednesday, the Fed meeting on Wednesday, and the upcoming Russell index rebalancing. My instincts are telling me that the market will move LOWER out of this range over the next few weeks.

My reasoning is as follows: 1) Part of this is just trading instincts and overall experience. 2) During this recent consolidation, there are very few growth stocks setting up. 3) The ones that are setting up are reversing (recent examples include AMPH, EVH, ALB, LTHM, and WDC). 4) There is no significant upside volume in either the Nasdaq Composite or the S&P 500, telling me that institutions are not committing to this market. 5) The biggest overhang is the Fed. Let’s not forget they are raising rates, fighting inflation, and taking liquidity out of the system.

The conclusion is the same: Stay defensive and be patient! I summarized all my recent points in a free post on the homepage of this website. I still don’t see any SUSTAINED upside until the Fed is done with their rate hiking cycle. If Friday’s CPI report comes out slightly favorable, I don’t care. Please stop having FOMO. Stop worrying about one day. The Fed will not change course over ONE report. They need to see consistently better economic data over at least a few months. If you are going to trade, please keep your positions light. I am currently 20-30% invested and will keep positions light until market conditions improve. If you have any questions, you can ask them during one of the upcoming webinars on June 11th or June 13th. Thank you and good luck for the remainder of the week.

Unusual Option Activity
6/8/22 Super Micro (SMCI) buyers of 600 Nov $45 ITM calls for $14.50 as the August calls roll out in time
6/8/22 Oil Services ETF (OIH) buyer of 2,050 October $270 puts for $16.80, adjusting some July strikes
6/8/22 Eli Lilly (LLY) with the January $340/$280 bull risk reversal opening mid-morning for $5.40, 1000X
6/8/22 Neurocrine Biosciences (NBIX) 1000 July $110 OTM calls bought for $1.25 to $1.30, recent M&A in the CNS space
6/8/22 Occidental (OXY) seeing bullish put sales including 4000 August $50 and 1500 of the December $60 strike
6/8/22 Occidental (OXY) also with 1000 September $65 puts sold to open for $6.15
6/8/22 ChargePoint (CHPT) with 10,000 June 24th (W) $15.50 puts sold to buy the $16/$19 call spread
6/8/22 Tesla (TSLA) buyers of 1250 July $760 calls today for $56.88 to $57.40
6/8/22 Acadia (ACAD) more bull spreads are selling the June 24th (W) $12 puts and buying the $20/$30 call spread, 2500X for a net $2.25
6/7/22 Diamondback Energy (FANG) opening sale 500 Sep. $150 puts for $12.50
6/7/22 Diamondback (FANG) also buyer of 500 Aug $135 calls for $31 and seller of 400 Aug $140 puts to open $6.70
6/7/22 Chevron (CVX) large buy 1000 October $185 calls $11.70 to $11.81
6/7/22 Sweetgreen (SG) seller of 500 Oct. $15 puts $3.10
6/7/22 S&P 500 ETF (SPY) seeing 2000 Oct. $410 puts sold to open $23.15 and 4000 Sep. $438 calls with buyers for $3M
6/7/22 Global Foundries (GFS) with 2700 July $45 puts sold to open $0.75 to $0.80
6/7/22 Schlumberger (SLB) buyers hot for 3350 August $52.50 calls $2.05 to $2.14
6/7/22 Schlumberger (SLB) also 1200 Dec. $45 puts selling to open $4.90
6/7/22 Marathon Oil (MRO) buyer 1100 September $33 calls for $3.30, name with consistent bull flow
6/7/22 SM Energy (SM) buyer 500 January $70 calls $6.50 offer
6/7/22 HF Sinclair (DINO) opening sales 2000 Dec. $70 calls $3.10 into strength
6/7/22 Eli Lilly (LLY) October $330/$260 bull risk reversals opening 845X at $8.60
6/7/22 Bristol Myers (BMY) opening seller 15,000 Sep. 82.50 calls for 1.02, similar to other Pharma names this week
6/6/22 Nasdaq 100 ETF (QQQ) with 3500 March 2023 $315 calls opening $31.25
6/6/22 ARK Innovation ETF (ARKK) sweep buyer 4000 Dec. $60 calls $2.50 offer
6/6/22 MP Materials (MP) opening sale 1500 Dec. $45 calls $5.70
6/6/22 ZIM Shipping (ZIM) opening seller 500 Dec. $50 puts for $5
6/6/22 ACAD Pharma (ACAD) buyer 500 July 20/30 call spreads, closes June 25 calls
6/6/22 Lockheed Martin (LMT) opening seller 500 Dec. $340 puts today $5.70
6/6/22 Johnson and Johnson (JNJ) opening sale 10,000 August $190 calls $1.75
6/6/22 AbbVie (ABBV) similar to JNJ with 10K Aug $160 calls sold to open 1.69
6/6/22 EQT Corp (EQT) opening seller 250 July $42 puts for $1
6/3/22 S&P 500 ETF (SPY) into the close large buyer 3300 June 2023 $370 calls for $20M+
6/3/22 ARK Innovation ETF (ARKK) buyer of 5000 July $42/$35 put spreads for $2.32
6/3/22 Devon Energy (DVN) with 23,300 July $80 calls opening $3.30 as the $70 calls adjusted
6/3/22 SM Energy (SM) buyer of 800 November $70 calls $3.60 offer