Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 8:15 Stock Review – Software: IGV (ETF), MSFT, ADBE, NOW, SNPS, CDNS, PANW, CRWD, VERX
4) 11:15 Stock Review – Big Pharma: LLY, NVO, VRTX
5) 12:20 Stock Review – Watch List/General Ideas/Commentary: NVDA, UBER, WING, DELL, RRC, META, DECK, AMZN, TW, ANET, LULU, CLS
6) 16:00 Stocks Near Buyable Ranges: NVDA, DELL, VRTX, ADBE
7) 17:00 Conclusion/Summary

Market Summary:
Today, we had a Day 4 follow through day (FTD) on the Nasdaq Composite. As always, I like to be open-minded and review the positives and the negatives. Positives: 1) Today’s FTD occurred on above average volume. The recent FTDs on 8/29 and 10/6 were on below average volume. That doesn’t mean that today’s will definitely work, but the increased volume makes it a higher probability situation. 2) We completed three legs down in the Nasdaq Composite, which started at the end of July. 3) Sentiment is VERY negative. 4) We are heading into two of the seasonally strongest months of the year in November and December. 5) Many software stocks are acting very well and approaching new highs. Negatives: 1) I would still like to see the number of stocks broaden out into other sectors. 2) We are still below the 50-day moving average on the Nasdaq Composite and S&P 500.

Part of the reason for today’s FTD was the dovish tone from Fed Chair Powell in his press conference. He basically hinted that the Fed is done raising rates for the year. That doesn’t mean we are out of the woods. From here, I would still like to see: 1) Little to no distribution days. 2) More stocks set up. 3) An additional FTD (or at least more accumulation). 4) The major indexes to regain their 50-days. I increased my investment levels from under 10% to approximately 50% invested today. If market conditions continue to improve, I will increase my exposure. If we see any heavy distribution and/or we take out the 10/26 low, I will reduce my exposure. Again, I will continue to be flexible and take this day-by-day. Good luck for the remainder of the week!

Unusual Option Activity:
11/1/23 Short Treasury ETF (TBT) 10,000 Jan $47 calls sell to open at $1.44, adjusting Dec $49 short calls and points to a bond floor
11/1/23 Nasdaq 100 ETF (QQQ) seeing large buyers of 5000 Dec 1st $355 calls for $8.65 to $8.78
11/1/23 S&P 500 ETF (SPY) seeing large lot buyers of 7600 Dec 8th $435 calls at $3.21
11/1/23 Homebuilders ETF (XHB) buyer of 2500 March $68 puts at $2.59, adjusting Dec $77 puts
11/1/23 Pepsi (PEP) buyer 2750 Nov. 24th (W) 170 calls near 0.70
11/1/23 Best Buy (BBY) with 3000 March $50 puts selling to open near 1.03
11/1/23 Philips 66 (PSX) seeing 750 December 115/120 call spreads bought
11/1/23 Zillow (Z) 1000 Nov. 2024 $35 puts sell to open for 5.90
11/1/23 Intuitive Surgical (ISRG) with 350 December $260 calls bought up to $16.20
11/1/23 Nvidia (NVDA) with 1000 June 2024 $435 puts sold to open for $66.45
11/1/23 Taiwan Semi (TSM) with 5000 Nov. 10th (W) $87 puts sold to open
10/31/23 Regional Banks ETF (KRE) with 5000 May $40 puts sold to open here at $3.95
10/31/23 Tesla (TSLA) 1675 January $215 calls sell to open 13.90 to 13.40
10/31/23 Hershey (HSY) with 900 May $195 calls selling to open 10.60 to 10.50
10/31/23 Starbucks (SBUX) opening sale 3000 Nov. 3rd (W) $93 puts 2.60
10/31/23 Exxon (XOM) opening sales of 3800 Nov $101 puts for $0.91 bids
10/31/23 Chevron (CVX) with 2000 Dec 8th (W) $135 puts sold to open $1.37
10/31/23 Chevron (CVX) also with 10K Dec $155 calls bought $0.98 to $1
10/31/23 Eli Lilly (LLY) opening sale 350 December $540 puts for 18.05, reports 11-2
10/31/23 Bristol Myers (BMY) buyers of 5000 April $60 calls up to $0.58, also 1200 April 50 puts selling to open
10/31/23 Vertiv (VRT) buyers 2000 December $45 calls 1.10 to 1.20
10/31/23 On Semi (ON) with 4500 December $50 puts selling to open 0.56
10/31/23 Salesforce (CRM) opening sale 250 January 2026 $195 puts for $28.15
10/31/23 Taiwan Semi (TSM) buyer 2500 Sep. 2024 $130 calls $1.01
10/30/23 Short Treasury ETF (TBT) seeing 10,000 Dec $49 calls sell to open at $1.19 bids, implies a rebound for TLT bonds
10/30/23 Semiconductor Bull 3X ETF (SOXL) seeing large buys of 4700 Nov 24th $15 calls at $1.15 to $1.41
10/30/23 Tesla (TSLA) opening seller 2500 January $235 calls down to 8.10
10/30/23 Tesla (TSLA) also 2000 January 2026 $180 puts sell to open $39.04
10/30/23 Uber (UBER) with 3000 Nov 10th $41 calls bought at $3.05 offer sweeps, earnings next week
10/30/23 MongoDB (MDB) with 1050 December $240 puts selling to open 3.55 to 3.40
10/30/23 Amazon (AMZN) with 2250 Dec. 1st (W) $135/$145 call spreads bought
10/30/23 Google (GOOG) opening sales of 1000 June 2025 $115 puts for $11.45 down to $11.25