Compound and Friends Podcast: https://www.youtube.com/watch?v=DbVPNpzgplM

Topics covered:
1) 0:00 Announcements
2) 0:35 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:30 BONUS EDUCATIONAL CONTENT – Lesson on being flexible
4) 11:45 Stock Review – Biotech: XBI (ETF), RVNC, VTYX, AMLX, AXSM
5) 14:50 Stock Review – Semiconductors: SMH (ETF), NVDA, PI, ACLS, ALGM, LSCC, STM
6) 16:40 Stock Review – Software: AYX, ESTC, AI, TENB, PANW
7) 18:10 Stock Review – Watch List/General Ideas/Commentary: FOUR, WING, URI, SGML, ANET
8) 20:00 Conclusion/Summary

Market Summary:
During the pullback last week, two negative events happened. On Tuesday, Fed Chair Powell said he still wants to fight inflation and will continue to raise rates if needed. The Nasdaq Composite saw its first above average distribution day in a while on that day (3/7). The selling started to stabilize near support and I mentioned in my MidWeek Video that I would stick to my positions unless we saw follow through selling. Unfortunately for the bulls, the second negative event happened with Silicon Valley Bank, and this led to further distribution on Thursday and Friday. It also led to the major indexes breaking support, specifically their 50-day and 200-day moving averages.

As I always say, I will be open-minded and flexible with my approach to the markets. Although many stocks were acting well, these two events led to increased selling and I was forced to reduce exposure. In this video, I discuss the ETFs and stocks I sold and I reduced my investment levels from approximately 70% down to 10% invested. I also emailed a Market Note to Members on Friday 3/10 notifying you that many positions were breaking support and that I was reducing exposure in my efforts to be transparent. From here, I would like to see the selling slow down and wait for clarity. I mention several times in this video and in the Saturday Webinar to be “defensive until we get more clarity.” By defensive, I mean raising some cash and using lighter than normal positions if you decide to trade. That way, you hopefully won’t get hurt too bad, as I am expecting higher volatility over the next 2-3 weeks. Again, stay defensive and be patient until market conditions improve again. I am open-minded that this could be a quick shakeout, but we also have to wait for clarity if SVB’s problems lead to further difficulties in the banking system.

Unusual Option Activity:
3/10/23 Russell 2000 ETF (IWM) buyer 5000 April 6th (W) 179/169 put spreads
3/10/23 Russell 2000 ETF (IWM) also buyer of 7500 July $160 puts today near 3.70 and April 171 and 169 puts with $50M premium bought
3/10/23 Regional Banks ETF (KRE) with 50K April $50 puts bought today, many spreads versus $45
3/10/23 S&P 500 ETF (SPY) with 16,000 June 30th (Q) $375 puts opening today as $385 adjust
3/10/23 Ark Innovation ETF (ARKK) seeing 15K April $35 puts open with $41 adjusting lower this afternoon
3/10/23 Marriott (MAR) bear flow buys 1000 October $150 puts to open $7.50
3/10/23 Devon Energy (DVN) buyers 2500 August $45 puts $2.97 offer
3/10/23 EOG Resources (EOG) with 500 June 2024 $105 puts bought up to $14.70
3/10/23 Blackstone (BX) buyer 2000 January $55/$45 put spreads for $1.60
3/10/23 Zillow (Z) with 3000 August $35 puts being bought $3.35
3/10/23 Toronto Dominion (TD) block of 2000 January $65 calls sold to open $3.10
3/10/23 Guardant Health (GH) bull flow in January with 1500 $25/$35 call spreads bought
3/10/23 Toll Brothers (TOL) with 1400 September $50 puts bought up to $2.85
3/10/23 Nvidia (NVDA) with 1700 March 31st (W) $235 puts opening up to $13.20
3/10/23 Apple (AAPL) opening seller 10K Mar. 31 (W) $145 calls for $7.25
3/10/23 Palo Alto (PANW) with 1300 September $150 puts bought up to $5.55
3/10/23 Texas Instruments (TXN) buyer 1000 January $190 calls for $12
3/10/23 Salesforce (CRM) large block buy 5000 May $185 calls $6.80 offer into weakness
3/10/23 Amazon (AMZN) buyer 10K Mar. 31 (W) $89 calls $5 into lows
3/10/23 Amazon (AMZN) also 1500 March 2024 $85 puts sold to open $9.40
3/9/23 Russell 2000 ETF (IWM) with 5000 August $190 calls sold to buy 5000 January $195 calls in an interesting spread
3/9/23 Semiconductors ETF (SMH) buyers 4500 May $230 puts $6.40 offer
3/9/23 Nasdaq 100 ETF (QQQ) seeing a large trade open 8966 April 28th $310/$280 bullish risk reversals for $2.63 debit
3/9/23 Tesla (TSLA) buyer of 750 March 2024 $190 puts at $39.40
3/9/23 MGM Resorts (MGM) buyer 2500 May $45 calls $2.40 into weakness
3/9/23 Valero (VLO) buyers 2450 June $150 calls $5.30 offer looking to add to large OI
3/9/23 Valero (VLO) also 1500 June $155 calls bought $4.65 offer, aggressive bull flow in the name
3/9/23 Eli Lilly (LLY) with 330 October $310 puts bought $22
3/9/23 Inspire Medical (INSP) opening sale of 400 April $250 calls at $23.30
3/9/23 Peabody Energy (BTU) buyer 1000 October $22 calls for $6.75
3/9/23 Taiwan Semi (TSM) opening seller 1000 October 90 puts 7.96
3/9/23 Advanced Micro (AMD) seeing a block of 1800 March 31st $97 calls bought for $1.05
3/9/23 Microsoft (MSFT) buyers of 4000 April 14th $270 calls today at $4.10
3/9/23 Apple (AAPL) buyers coming in for 20,000 July $180 calls $1.82 to $2
3/9/23 Texas Instruments (TXN) with 850 June $155 ITM calls bought $25.80 this morning
3/9/23 Okta (OKTA) opening sale of 242 January 2025 $70 puts at $12.65