As I mentioned last weekend, the biggest positive in the market right now is that there’s very little distribution. So far this week, we haven’t seen any distribution days and the Nasdaq Composite and the Russell 2000 both had accumulation days today. One thing to watch for is the Nasdaq Composite’s pattern of climbing for approximately 8-12 days, and then pulling back to its 21-day EMA. I mention this because the Nasdaq Composite has run for 8 days since the last visit to its 21-day EMA. This is where I constantly remind people to know their timeframe and their own investment objectives. If you are longer-term investor and you have strong entries, then stick with the trend. If you are a trader, there’s nothing wrong with taking some profits into strength and having some cash for the inevitable pullbacks. If you are looking to enter new positions, there’s nothing wrong with starting with lighter positions. That way, in case we pull back, you won’t get hit as hard and you will also have some cash to possibly add to your positions on support. Overall, I still think we head higher into the US Presidential election. I highlighted some HUGE option trades in bold below that add to my thesis of a continued run into the election (with pullbacks and shakeouts along the way of course). That’s why I constantly stress getting a strong entry point. Good luck for the remainder of the week!

Unusual Option Activity:
8/5/20 Salesforce (CRM) with 35,000 November $200/$230 call spreads bought for $12.00
8/5/20 Facebook (FB) buyer 35,000 November $250/$275 call spreads for $10.50
8/5/20 Microsoft (MSFT) buyer 75,000 November $220/$240 call spreads for $6.75
8/5/20 Adobe (ADBE) buyer of 20,000 October $450/$490 call spreads at $17.20
8/5/20 Amazon (AMZN) with 1250 November $3500/$3750 call spreads opening in that same timeframe as other Tech large cap bets
8/5/20 Microsoft (MSFT) with 2,000 September 11th (W) $220/$230 call spreads opening early for $2.90, pushing for any TikTok deal to
be done by 9/15.
8/5/20 Service-Now (NOW) seeing smaller lots but 1900 Aug. 14th (W) $450 calls opening near $5.35 today
8/5/20 Z-Scaler (ZS) with 380 February $170 OTM calls bought today $9.60 offer, ZS also 450 November $130 puts sold to open $14.70
8/5/20 DataDog (DDOG) near 700 March $70 puts sold to open today $7.80 to $7.60, willing buyer into weakness with earnings tomorrow afternoon
8/4/20 Amazon (AMZN) with 500 Aug. 28th (W) $3100 calls opening this afternoon $117 to $127, large value over $5M
8/4/20 Herbalife (HLF) with 1,000 August 14th (W) $54 calls bought $1.20 to open versus a sale of 500 August 14th (W) $48 puts for $1.15 into earnings on Thursday
8/4/20 Z-Scaler (ZS) with 350 January $130 puts sold to open $19.80, popular approach in the cloud security leader
8/4/20 Microsoft (MSFT) with 1000 September $225 puts sold to open for $18.44 today ITM
8/4/20 Zillow (Z) with 350 February $85 OTM calls bought $7.45 to $7.70 today
8/3/20 PayPal (PYPL) buyer 300 June 2021 $250 calls for $10.40
8/3/20 Microsoft (MSFT) with 7000 September 4th (W) $230 calls being bought today near $2.65
8/3/20 Qorvo (QRVO) buyer 1520 November $135 calls up to $12.40 as August calls adjust, coming off a great quarter and a top quality Semi
8/3/20 Staar Surgical (STAA) opening sale of 1000 Sept. $48 puts for $0.55

Topics covered:
1) 0:00 Announcements
2) 0:35 Market Commentary and Index Review
3) 7:50 Notes on Trading Ideas (Use the 21-day EMA as your shorter term guide and the 10-week Moving Average as your longer term guide)
4) 8:45 Stock Review – General Ideas/Commentary: DOCU, DDOG, CRNC, LRN, CHGG, TWLO, FSLY, ZM, Z
5) 14:50 Stock Review – Semiconductors: NVDA, AMD, TER, MKSI, QRVO, SWKS, (Forgot to mention the main Semi ETF: SMH)
6) 17:00 Stock Review – General Ideas/Commentary: BABA, JD, CRL, DT, CRWD, APPS, LOW, HD, NFLX
7) 20:50 Current Setups – DT, NOW, TSLA, EBAY, CRWD
8) 23:20 Conclusion/Summary