Topics covered:
1) 0:00 Announcements
2) 0:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 7:00 Stock Review – Energy: XLE (ETF), XOM, CVX, XOP (ETF), OIH, SLB, HES, OXY, DINO, MTDR, FANG
4) 9:30 Stock Review – Biotech/Medical Products: XBI (ETF), PRTA, AMLX, NBIX, VRTX, BIIB
5) 11:25 Stock Review – Watch List/General Ideas/Commentary: SWAV, PRCT, ENVX, CELH
6) 14:30 Conclusion/Summary

Market Summary:
In recent videos, I discussed the positives and negatives in the market. The biggest positive was how the technicals in the major indexes were starting to improve. They were slowly getting above key moving averages and we were starting to see some accumulation. However, I mentioned to give it time and let the market prove itself because of the biggest negative, which is the hawkish Fed. One common question over the past two weeks was: Has the market bottomed for the year? Or is this another BS short covering rally that was going to be met with selling? Rather than guess, I said to wait for clarity from the Fed at their meeting this week.

Unfortunately for the bulls, the Fed remained hawkish at their meeting today. They made it clear that they will continue to fight inflation, and to be honest, they don’t want to see the stock market go higher. The conclusion goes back to what I have been saying since early April. We are unlikely to see any sustained upside until the Fed verbally announces they are done with this rate hiking cycle. They are likely to slow down the pace of future rate hikes, but we have to be patient until we see more favorable economic data showing that job growth and inflation are slowing down. Today’s decline put a dent in the positive technicals and we have to be open-minded to two scenarios: 1) We could be in a range for a while or 2) All these rate hikes could lead to something “breaking” in the system and result in another leg down. Either way, sustained upside is unlikely over the near-term and I reiterate to stay patient, stay defensive, and minimize your trading. The other negative I mentioned recently is how there are very few growth stocks acting well. Until this changes and market conditions improve, PLEASE STAY DEFENSIVE!

Unusual Option Activity:
11/2/22 Nasdaq 100 ETF (QQQ) buyer 2000 Nov. 21st (W) $282/$292 call spreads
11/2/22 Nasdaq 100 ETF (QQQ) seeing 1000 February $275 puts sell to open near $17
11/2/22 Russell 2000 ETF (IWM) buyer of the Dec. 30th (Q) $165/$150 put spreads
11/2/22 S&P 500 ETF (SPY) with 6000 March $358 ITM calls bought today for $25M
11/2/22 Tesla (TSLA) with 2000 January $180 ITM calls bought to open $54 to $56
11/2/22 Marathon Oil (MRO) with 1400 January 2024 $27 puts sold to open for 4.45
11/2/22 Occidental (OXY) opening sale 1000 Dec. 2nd (W) $73 puts $4.10
11/2/22 Chevron (CVX) buyer 1000 Nov. 25th (W) $182.50 calls $4.50
11/2/22 Eli Lilly (LLY) opening sellers of 750 Feb $350 puts for $20.50 down to $19.75
11/2/22 Apple (AAPL) buyer 30,000 April $135 puts $7.15 to $7.24
11/2/22 Nvidia (NVDA) buyer 1500 June 2024 $320 calls $5.50
11/2/22 Micron (MU) size buy of 17,000 March $50 puts for $3.70 as December 47.5 adjusted
11/1/22 Nasdaq 100 ETF (QQQ) opening sale 1800 Sep. 29th (W) $260 puts for 20.09
11/1/22 S&P 500 ETF (SPY) with 28,000 Dec $367 puts opening for $20M as $370 strike adjusts
11/1/22 S&P MidCap 400 ETF (MDY) with 2200 November $440 puts opening $9
11/1/22 Eli Lilly (LLY) large opening seller 800 March $350 puts ITM 28.70
11/1/22 HF Sinclair (DINO) with 1000 January $60 calls bought $5.90 offer
11/1/22 Exxon (XOM) opening sale 1500 December 120 ITM puts for $10.65
11/1/22 Schlumberger (SLB) large opening put sale for 2000 May $50 at $5.80
11/1/22 Nvidia (NVDA) large buys of 2000 Dec. 2nd (W) $130 calls ITM today $13.90 offer, reports 11-16
11/1/22 Neurocrine (NBIX) seeing 1500 February $120 calls sell to open $10 to $9.50 into strength
10/31/22 Energy ETF (XLE) buyer 10,000 December $84 puts $2.21 adjusting the $79 puts
10/31/22 Exxon (XOM) buyer 1800 April $135 calls for $3.10
10/31/22 Occidental (OXY) buyer 500 Dec. 9th (W) $73 calls for $5.20
10/31/22 Conoco (COP) seeing 1300 May $140/$120 bull risk reversals open at zero cost
10/31/22 Microsoft (MSFT) buyer of 6600 November $232.50 calls for $7 to $8
10/31/22 Pepsi (PEP) opening seller 5000 November 172.50 puts 0.81
10/31/22 Novocure (NVCR) opening seller of 870 Jan $60 puts for $9.30 to $8.20
10/31/22 Nvidia (NVDA) with 500 Jan 2025 $140 calls bought at $42 to $43