Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 7:30 FOCUS LIST: XBI (ETF), CELH, SWAV, PRCT
4) 12:25 Stock Review – Watch List/General Ideas/Commentary: LNTH, TMDX, AXNX, EVH, GH, IRTC, ARKG (ETF), RXDX, AXSM, NBIX, DICE, NGM, XENE, BMEA, ACHC, VRTX
5) 18:45 Stock Review – Watch List Continued: ACLS, ON, PLAB, GFS, PI, MPWR, ALB, BE, LTHM, LAC, CF, OXY, DVN, RRC
6) 23:45 Stocks near buyable ranges: CELH, TMDX
7) 24:50 Conclusion/Summary

Market Summary:
In the MidWeek Video, I discussed how I was expecting a consolidation in the market over the near-term. My instincts were that we would see a normal pullback to the 21-day (and possibly the 50-day) over the next few weeks for several reasons. The main one is that stocks are extended, many need time to build handles, and there aren’t many safe entry points. So far, we started this pullback late last week and I will be observing three things: 1) The price action of stocks, especially the leaders to see if they consolidate well. I will also be watching for new stocks to set up. 2) The price action of the major indexes to see if the pullback is on light volume. 3) Sentiment. As I mentioned, many people are still negative and I was expecting a jump in put buying, which happened on Friday.

From here, my instincts are to be patient, but I’m not going to get too negative. I think this is a normal pullback, especially considering the strong move off the June lows. So far, leading stocks are acting well and sentiment remains negative. For these reasons, I am not expecting another leg down to new lows, but I still think it’s worth being patient, letting the Nasdaq Composite come down to its 21-day, and then reassess from there. If I do anything, it will be scaling into lighter positions, but I’m mostly going to observe for now. Again, be patient. If the market has an orderly pullback, it could set us up for some strong opportunities in the next few weeks. Thank you and enjoy the remainder of your weekend.

Unusual Option Activity:
8/19/22 Ark Innovation ETF (ARKK) opening seller 3050 March 37 puts for 3.45
8/19/22 Sweetgreen (SG) buyer 2000 Sept $20 calls for $1 as 3000 of the $25 are sold $0.10, August 17.5 adjust
8/19/22 Intercept Pharma (ICPT) 1000 January 2024 $15 puts sell to open for $4
8/19/22 Axsome Therapeutics (AXSM) trade opens 870 March $70/January $35 bull risk reversals for $8.20
8/19/22 WolfSpeed (WOLF) seeing 2000 Dec $115 calls open for $2.9M as the $95 calls bought 8/3 adjust
8/18/22 Walmart (WMT) opening seller 1000 November $140 puts $6.45 to $6.25
8/18/22 Dice Therapeutic (DICE) October spreads selling 2000 17.50 puts to buy the $25/$30 call spreads
8/18/22 Cheniere Energy (LNG) with 1100 Jan $200 calls bought up to $6.30, also 370 March 200 calls bought 7.90 offer
8/18/22 Guardant Health (GH) trades 1600 Sept $50 calls, looks to be adjusting the Aug $50 calls and Sept $55 calls