Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 8:25 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), DINO, APA, SM, OXY, MTDR, HP
4) 13:25 Stock Review – Biotech/Medical Products: XBI (ETF), IBB (ETF), INBX, ACLX, MEDP, PRCT, SWAV, DXCM, PODD, TMDX, HRMY, HALO
5) 18:10 Stock Review – Lithium Related: ALB, LTHM, SGML
6) 19:10 Stock Review – Semiconductors: SMH (ETF), GFS, AEHR, PI, ON
7) 20:45 Conclusion/Summary

Market Summary:
In this video, I review the price action of the Nasdaq Composite over the past month. The index was starting to improve after the October 13th CPI report, but began to rollover into this past week’s CPI report. I mentioned there were no growth stocks setting up, and that I was going to continue to lean defensive. One strategy I’ve discussed many times is that when the market gets oversold but there are no stocks setting up, you can use index or sector ETFs to give you broad exposure until growth stocks improve.

The CPI report came out better than expected on Thursday (showing slightly lower inflation) and the markets surged to the upside. In hindsight, Wednesday’s decline occurred on lighter volume and Tuesday’s equity only put-to-call reading was one of the highest since 2008. In other words, the institutions weren’t heavily selling earlier this week and sentiment was getting VERY negative. Now the big question becomes: Is this the beginning of a new uptrend? Or just another rally in a bear market? It’s too premature to answer that question, but this is where you have to be very open-minded. As I mention in this video, you have to be flexible when some of the facts change. One of them is that the Fed Funds terminal rate has come down from 5.25% to 4.8%. The market could be pricing in that we are closer to the end of this current rate hiking cycle.

From here, I would like to see the market consolidate its recent gains and give time for growth stocks to setup and provide safer entry points. In this video, I review how more sectors are starting to improve (outside of Energy). These include: Biotech, Medical Products, Lithium related, and Semiconductors. Most of these stocks are just on the watch list for me, as I want to wait for proper handles to be formed and for safer entry points. Let’s continue to be patient and see if the market can continue to prove itself over the next 1-3 weeks. Either way, this week was a step in the right direction for the bulls. Thank you and enjoy the remainder of your weekend.

Unusual Option Activity:
11/11/22 Nasdaq 100 ETF (QQQ) with 10,000 Dec. 2nd (W) $290/$299 call spreads bought
11/11/22 Nasdaq 100 ETF (QQQ) also buyer of 7000 Sep. $380 calls $4.38, and 4000 June 2024 $300 calls for $18M
11/11/22 S&P 500 ETF (SPY) sweep buyers 10,000 February $380 puts $12.33
11/11/22 ARKK Innovation ETF (ARKK) seeing 14,000 Dec 2nd $43.50 calls bought at $0.94 as the $41 calls adjust higher
11/11/22 Academy Sports (ASO) buyers of 3000 June $35 puts for $3.25
11/11/22 Block (SQ) with 1250 March 77.50 calls bought up to $9.50
11/11/22 Freeport McMoran (FCX) buyers 4500 December $45 calls $0.78 offer
11/11/22 Microsoft (MSFT) with 5000 Dec. 2nd (W) $250 ITM puts selling to open 10.50 to 10
11/11/22 Microsoft (MSFT) also with 2000 January 2024 $210 calls opening up to $60.80
11/11/22 Oracle (ORCL) sellers of 5500 January 67.50 puts 1.39 bids
11/11/22 Shift4 Payments (FOUR) buyer of 1200 Dec $50 calls at $2.60, adjusting Nov calls
11/10/22 Nasdaq 100 ETF (QQQ) large trade sold 20,000 March $275 puts to buy the $285/$320 call spreads 20,000X
11/10/22 Dow Jones ETF (DIA) buyers 5000 January $325 puts $8.30 offer
11/10/22 Russell 2000 ETF (IWM) buyer of 5000 June 2024 $185/$210 call spreads
11/10/22 Russell 2000 ETF (IWM) also 39,000 Dec. $173 puts active as the $166 adjust hedges
11/10/22 Biotech ETF (IBB) with 20,000 March $119 puts bought to open today $3.40 to $3.70
11/10/22 Tesla (TSLA) buyers of 700 Dec $185 calls at $17.50 up to $18
11/10/22 Disney (DIS) sale to open 2400 February 80 puts for 3.50
11/10/22 Exxon (XOM) opening seller 1000 Dec. 9th (W) $109 puts $5
11/10/22 Occidental (OXY) spread selling 5000 Feb $65 puts for $4.55 and buying 5000 May $90 calls for $3.80
11/10/22 Abbott (ABT) buyer 1000 May $105 calls for $7.75
11/10/22 Apple (AAPL) buyers 5000 Dec. 2nd (W) $148 calls 2.64
11/10/22 Snowflake (SNOW) with 2000 Dec. 2nd (W) $180 calls bought $3.30 to $3.50
11/10/22 Palo Alto (PANW) buyer 1150 March $190 calls $7 offer