Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:00 FOCUS LIST: XBI (ETF), CELH, SWAV, PRCT
4) 12:20 Stock Review – Watch List/General Ideas/Commentary: GH, EVH, LNTH, IRTC, HALO, ARKG (ETF), AXNX, TMDX, CALM, BMEA, AXSM, ENPH, HRMY
5) 18:10 Stock Review – Watch List Continued: MPWR, ACLS, ON, PLAB, GFS, ALB, LTHM, LAC, ENVX, CHPT
6) 21:10 Conclusion/Summary

Market Summary:
We’ve seen a strong run off the June lows and the market is due for a consolidation. Keep in mind, the market can correct through price or through time. My instincts tell me we will correct through price and have a normal pullback over the next few weeks for the following reasons: 1) There are very few safe entry points right now. Many of the stocks on our focus list have run nicely and are due for normal pullbacks. In addition, many of the stocks on our watch list have run up to form the right side of their new bases and need time to form handles. 2) The indexes are extended. A pullback to the 21-day (or possibly the 50-day) would be considered normal price action in my view. 3) As I highlight in this video, we’ve seen 5 distribution days in the past 8 trading days on the Nasdaq Composite. In addition, the S&P 500 and Russell 2000 are likely to find resistance into their 200-day moving averages. 4) 90% of the S&P 500 companies have reported earnings, so the news cycle will likely shift towards geopolitical news and non-stop interest rate talk. Also, the second half of August and September tend to be seasonally weak periods. 5) Let’s not forget the Fed is still raising interest rates. Whether they increase by 50 or 75 basis points at their next meeting will depend on the data next month. So, I can’t see institutions committing significant capital until they get more clarity from the Fed.

Here are the positives: 1) Sentiment is still very shaky. If we get a normal pullback, I wouldn’t be surprised to see a jump in puts and many people looking to short. Please keep in mind that the market doesn’t need to see new highs nor new lows this year. Many people forget that a normal pullback and/or a range-bound market is also a possibility. 2) There are still many growth stocks acting well, they just need time to digest their recent gains. If they consolidate well on light volume, they could possibly set up secondary buy points over the next few weeks.

Conclusion: This is where you need to decide if you’re a trader or an investor. I discuss different scenarios and options in this video. For me, I am keeping core positions in some of the strong stocks I entered last month, but I will not be looking to make any new aggressive buys until I see a pullback. If I do anything, I will use lighter than normal positions. I can’t stress this enough, please be patient! Give the market time to digest its recent gains and DO NOT chase extended stocks. If we do get a pullback, I’ll be watching to see how the leaders act and if more stocks setup. If anything provides a safer entry point, I will of course discuss it in future videos. Thank you and good luck for the remainder of the week!

Unusual Option Activity:
8/17/22 Amazon (AMZN) large opening put sale 2100 November $131 puts sold to open 5.95
8/17/22 Apple (AAPL) seller to open 5000 Sep. 2nd (W) $172.50 puts for $3.10 bid as put sales remain popular
8/17/22 Apple (AAPL) put sellers active in November $170 puts again for $7.70, 25,000X, massive put premium being collected
8/17/22 Financials ETF (XLF) large trade opened 20,000 June 2023 $36/$33 bull risk reversals for $1.14 debit
8/17/22 Vermilion Energy (VET) with 1500 January 2024 $25 calls opening for $8
8/17/22 Pacific Bio (PACB) unusual buy of 1000 January 2024 $5.5/$15 call spreads for $2.35
8/17/22 Albemarle (ALB) buyer of 475 January $230 puts for $12.50 offer
8/17/22 Google (GOOGL) with 2000 November $120 calls bought today $7.95 to $8.40 looking to add to OI
8/17/22 GitLab (GTLB) opening seller 1700 October 75 calls today for $4.10 willing to get called away
8/16/22 Academy Sports (ASO) buyer 1750 January 60 calls for 2.70 to open
8/16/22 Enphase (ENPH) early buyers of 490 Oct. $350 calls $12.20 to $12.35
8/16/22 Tesla (TSLA) with $10M in Sep. 2nd (W) $980 calls opening with 3000 contracts bought $31.65+
8/16/22 Tesla (TSLA) also $65M in September $795 calls opening as Sep. 2nd (W) $785 adjust
8/16/22 Guardant Health (GH) stock replacement bought 2000 November $65 calls for $5.22 to $5.47
8/16/22 Enovix (ENVX) opening sale 2500 January 27.50 calls for $5
8/15/22 Booking (BKNG) with a $77M position opening, 2000 January $1875 calls, as the Sep. $1700 adjust from 5/20
8/15/22 Enovix (ENVX) with 1000 Oct. 2023 $40/$17.5 bull risk reversals opening
8/15/22 Software ETF (IGV) 1900 February $240 puts selling to open $5.80, willing to be long just below the lows of 2022
8/15/22 Apple (AAPL) massive opening put sellers back at it once again with 20,000 Dec 165 sold to open 7.30 today
8/15/22 Google (GOOG) buyers of 2000 November $142.50 calls $1.55 offers
8/15/22 Axsome (AXSM) saw some bull adjustments last week and today spreads selling Dec 30 puts to buy the 50/60 call spreads 850X
8/15/22 Eli Lilly (LLY) seeing upside Sept 340 calls bought 1000X, big bull risk reversal last week
8/15/22 Global Foundries (GFS) 550 January $45 deep ITM calls opening near $21 for over $1M