Right now, there are mixed signals in the market. The major averages are acting well but, beneath the surface, many of the growth leaders are potentially starting to correct. The positives include all the major indexes are above their 10-week moving averages, there’s little distribution, and the Fed is on our side. The negatives include very few safe entry points (although many of the leaders are still in strong uptrends, in my view they are not buyable for a sustained move), the upcoming seasonality (as next week is the week after regular cycle Options Expiration and August and September are two traditionally weak months). Also, the Equity Only CBOE Put/Call Ratio was 0.38 today, the lowest reading since 0.37 on June 8th before the market pulled back. It’s not a major warning sign, but the market usually has trouble making progress when everyone is loading up on calls.

The best way to summarize my view is to be patient until we see a clearer picture. I reduced my exposure from approximately 90% last week down to 50% today. I am by no means turning bearish. I am simply being cautious and keeping lighter than normal positions until conditions improve in the leaders or until I find more quality setups. As I mention in the video, my goal is to keep you on the right side of the market. However, when I see mixed signals, I will always lean towards being cautious because there will always be opportunities down the road. As always, I will take this one day at a time and update you this weekend. Good luck for the remainder of the week.

Unusual Option Activity:
7/15/20 Service-Now (NOW) with 350 January 2022 $450 ITM puts being sold to open today near $96
7/15/20 Regeneron (REGN) 300 next week $630 puts sold to open $13.50
7/14/20 Twilio (TWLO) bullish action seeing 1200 January $290 calls open with buyers near $14 and seeing 980 of the $170 puts sold to open
7/14/20 Crowd-Strike (CRWD) buyers of nearly 1000 September $130 calls $3.30 to $3.40 today, 1,109 in OI
7/14/20 Crowd-Strike (CRWD) also with 500 September $100 puts sold to open for $10.05 in a stock replacement
7/13/20 DataDog (DDOG) trading 950 August $95 calls early for over $1M, look to be adjusting back the $100 calls

Topics covered:
1) 0:00 Announcements
2) 0:40 Market Commentary and Index Review
3) 8:40 Stock Review – AMZN, MSFT, TSLA, DOCU, DDOG, FSLY, SDGR, STMP, COUP, AYX, CRWD, DXCM, SGEN
4) 18:00 Current Setups – QRVO, MKSI, IDYA, VRTX
5) 19:40 Conclusion/Summary