Topics covered:
1) 0:00 Announcements
2) 1:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 11:15 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), USO (ETF), DVN, OXY, MRO, MPC, VLO, EQT, APA
4) 14:55 Stock Review – Watch List/General Ideas/Commentary: SWAV, CELH, UTHR, PRCT, LNTH, HALO, CCXI
5) 19:20 Conclusion/Summary

Market Summary:
I discussed in recent videos how I expected the market to move out of its recent range to the downside. A few members asked me what I saw before this happened and I want to stress an important point that I’ve made over and over. 90% of what I use to judge the health of the market is the price action of stocks. During the recent two-week consolidation, there were VERY few stocks setting up, and the ones that tried to breakout failed. In addition, there was no accumulation from the big institutions and the Fed continues to be a big overhang. The market was already pricing in a 50 basis point rate hike in the upcoming June and July meetings, but the third meeting from now in September was a big question mark. Friday’s higher than expected inflation (CPI) report solidified the probability of another 50 basis point hike in September and the possibility of a 75 basis point hike in July. Overall, the Fed is still hawkish, raising rates, fighting inflation, and that does not provide a friendly backdrop for equities.

Therefore, the conclusion is the same. Stay defensive and be patient. I currently have a few light positions and maintain a cash position of greater than 90%. There’s nothing to buy, the wind is not at our back, and I’m concerned that the Fed might get more hawkish in their efforts to fight inflation. Again, if you do anything, PLEASE keep things light. On the positive side, I’m noticing some stocks holding up well that could be potential winners when we start a new uptrend, but again, we need to be patient until market conditions improve. If you have any questions, you can ask them during the next webinar this Monday, June 13th at 7PM EST. Thank you and enjoy the remainder of your weekend.

Unusual Option Activity
6/10/22 Russell 2000 ETF (IWM) with 20,000 August $165 puts bought from $4.65 to $4.80
6/10/22 Russell 2000 ETF (IWM) also with the July $172 puts being bought over 70,000 from $3.85 to $4
6/10/22 Vanguard S&P ETF (VOO) buyers of 12,500 October $290 puts for $4.90 to $5
6/10/22 Occidental Petroleum (OXY) buyers of 2450 November $60 puts for $7.85
6/10/22 Albemarle (ALB) buyer of 1000 July $230/$200 put spreads for $8.65
6/10/22 Microsoft (MSFT) with 1780 November $190 puts sold to open for $4.65 to $4.55
6/10/22 Johnson & Johnson (JNJ) with 1000 August $160 puts sold to open for $2.35
6/9/22 Russell 2000 ETF (IWM) buyers of 30,000 July $176 puts late in the day for $3.55
6/9/22 Energy ETF (XLE) spread selling 7500 September $100 calls and buying 15,000 of the $87/$77 put spreads
6/9/22 Diamondback Energy (FANG) opening buyer of 500 January $180 calls for $15.80 as some $150 calls adjust higher
6/9/22 Exxon (XOM) with 3750 September $100/$90 put spreads bought for $3.10
6/9/22 Chemocentryx (CCXI) buys today of the July $30 calls for $1.10 to open, over 1000X