Topics covered:
1) 0:00 Announcements
2) 0:25 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 5:30 FOCUS LIST: WING, HALO, CELH, PI
4) 8:55 Stock Review – Semiconductors: SMH (ETF), KLAC, LRCX, ASML, ACLS, NVDA, AEHR, GFS, ALGM, MBLY, LSCC
5) 13:00 Stock Review – Biotech: XBI (ETF), IBB (ETF), AXSM, AMLX, RVNC, FDMT, PCVX, ALNY, RCKT, RYTM
6) 17:05 Stock Review – Medical Products: DXCM, PODD, HRMY, TMDX, MEDP
7) 19:30 Stock Review – Watch List/General Ideas/Commentary: CALM, BOX, AYX, SPLK, ARRY
8) 21:50 Conclusion/Summary

Market Summary:
The major indexes were in a range over the past few weeks but gapped down below key support last Thursday. I emailed a Market Note to Members saying that the S&P 500, Nasdaq Composite, Mid Cap 400, and Dow Jones all gapped below their respective 21-day EMAs. In addition, the Russell 2000 gapped below its 50-day. On Friday, the selling continued and we ended with a fairly ugly technical down week on heavy volume. When looking at individual stocks, the theme continues of strength consistently being sold into. Why is this happening? Mainly because the Fed is raising rates and taking liquidity out of the system. They are maintaining a restrictive environment in their efforts to bring inflation down.

The conclusion is the same: Stay defensive and be patient. I reduced this week from approximately 30% invested down to around 15% by the end of the week. I maintain a heavy cash position mainly because of the poor price action in stocks and the indexes breaking below support. It doesn’t mean that the market has to go lower, but there’s a low probability of any SUSTAINED upside until the Fed ends their current rate hiking cycle. Again, please protect your capital and protect your confidence. There will be strong opportunities in growth stocks, we just have to wait patiently for healthier conditions. Thank you and enjoy the rest of your weekend.

Unusual Option Activity:
12/16/22 S&P 500 ETF (SPY) with 24,000 January $367 puts opening early as 371 strike adjusts lower
12/16/22 S&P 500 ETF (SPY) also Feb. 368 puts with 12,000 seeing some size buyers
12/16/22 Russell 2000 ETF (IWM) opening seller 5500 Sep./ 29th (Q) $160 puts for $9.47 to $9.55
12/16/22 Walmart (WMT) opening seller 1000 Sep. 2023 $125 puts for $4.25
12/16/22 Floor & Decor (FND) with a large opening put sale for 11,000 January $70 puts at $2.36
12/16/22 Enphase (ENPH) opening seller for 460 June $170 puts for $7.60
12/16/22 Hess (HES) a block of 1100 Jan $145 ITM puts sell to open for $14.80, adjusting the Dec short puts
12/16/22 Biogen (BIIB) buyer 750 February $315 calls $6.10 OTM
12/16/22 Rhythm Pharma (RYTM) with 3000 April $30 calls bought for $5.05, adjusting Jan $25 calls
12/16/22 Amazon (AMZN) buyers active early 4350 March $73 puts $2.48 offer
12/15/22 S&P 500 ETF (SPY) with 5000 Jan. 27th (W) $385 puts bought for $8.39
12/15/22 Oil & Gas ETF (XOP) buyer 2000 February $130 puts for $7.35
12/15/22 Tesla (TSLA) opening seller 600 July $165 puts for 31.60
12/15/22 Target (TGT) opening sale 1000 February $150 puts for $10.05
12/15/22 Target (TGT) also 900 June 140 calls bought $19.80
12/15/22 Occidental (OXY) buyer of 2500 February $65/$80 call spreads for $3.45
12/15/22 Chevron (CVX) with 1075 February $160 calls bought into weakness near $16.70
12/15/22 Eli Lilly (LLY) with 1600 February $380/$311 bull risk reversals opening at $6 debit
12/15/22 Rocket Pharma (RCKT) buyer 1500 January $25/$35 call spreads $1.30
12/15/22 Rhythm Pharma (RYTM) with a buyer 1000 February $30 calls for $3.40 as Dec. $25 adjust
12/15/22 Bristol Myers (BMY) opening seller of 4000 Feb $72.50 puts at $1.31 bids
12/15/22 Caterpillar (CAT) large opening seller 10,000 March $200 puts 4.75 to 4.95
12/15/22 On Semi (ON) buyer 750 January 2024 $65 puts for $12.20
12/15/22 Advanced Micro (AMD) with 4500 February 60 puts being bought up to $3.20
12/15/22 Amazon (AMZN) morning buys of 3000 June $74 puts at $4.55 offer
12/15/22 AbbVie (ABBV) opening puts sales as 10,000 Jan $150 are sold for $1.08 and 10,000 Feb $145 are sold for $1.61