Topics covered:
1) 0:00 Announcements
2) 0:35 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 14:50 Stocks Showing Relative Strength and General Commentary – APPN, DDOG, DOCU, SQ, CRWD, ZS, OKTA, U, SDGR, HALO, SWTX, CLDX, MRVL, ACMR, STAA, TXG, PGNY, ADPT, UPWK, CHGG, PLTR, IDYA, FTCH, LQDT, ETSY, ZUMZ, RVMD, ZI, ATEC
4) 30:40 Current Setups – NLS, INMD, FSLY
5) 34:00 Conclusion/Summary

Market Summary:
The best way to summarize my market stance right now is: cautious, but not bearish. There are many positives in the market (The Fed and the major indexes above their key moving averages) but there are also some negatives. Whenever there are mixed signals, please understand that I will always lean towards a defensive posture because I’m trying to protect people. If I miss out on a little bounce here and there, I don’t care. I am looking for a SUSTAINED uptrend to feel confident about putting capital to work and I don’t see one right now. The good news is that things can turn quickly in the market, and I’m just being patient until I see the volatility calm down.

I am currently 30% invested and still maintain a large cash position. My current holdings are approximately half of the positions I normally take (i.e. 2-3% positions vs. 4-6% positions). I am still finding a great deal of stocks showing relative strength and I discuss them in this video. As I mentioned in last Monday’s Note, if you take new positions, keep them light because I am still expecting more volatility over the near-term. Also, when things calm down, there will be another strong uptrend in the future. The key is to remain defensive and patient until market conditions stabilize. If you have any questions, you can ask them during the next webinar on Sunday, January 31 at 7PM EST. Enjoy the rest of your weekend!

Unusual Option Activity
1/29/21 Facebook (FB) opening sale 1000 May $250 puts $20.30.
1/29/21 Facebook (FB) also earlier a buyer of 6,500 May $220 calls for $46.80
1/29/21 JD.com (JD) with 2,000 June $87.50 puts sold to open $9.90 to $9.60 into the recent pullback.
1/29/21 JD.com (JD) buyers also active 2800 Mar $100 calls
1/29/21 Bristol Myers (BMY) with 4,000 January 2023 $62.50 calls bought today $8.50 to $8.70
1/29/21 Marvell Tech (MRVL) with sellers of the Jan. 2022 $50 puts to open for $9.20, over 1000X
1/29/21 Software ETF (IGV) the March $330 puts being sold to open this afternoon 925X for $11.20 to $11.10
1/29/21 FuboTV (FUBO) with 7500 March $45/$55 call spreads opening today for $2.75, adjusting some Feb. spreads
1/29/21 Novocure (NVCR) seeing some large June ITM calls close today and roll out to buy 1,000 Sept. $165 calls for $31.50 and 1,950 Sept. $120 calls for $53
1/29/21 Novocure (NVCR) also with 500 September $155/$210 call spreads bought for $17.30 as some more positions roll
1/29/21 Disney (DIS) with 1,500 February $167.50 calls bought today from $7.50 to $8.25 ahead of earnings
1/29/21 Editas Medicine (EDIT) with 1,000 OTM February $83 calls bought to open today, one block earlier at $2.15 and another later at $2.30
1/28/21 Micron (MU) today with 12,000 April $80 calls bought $6.25 to $6.40
1/28/21 Palantir (PLTR) with 2,000 April $30 ITM calls bought today for $11.60 to $11.90
1/28/21 Snowflake (SNOW) with 300 August $250 puts sold to open $40.80 to $40.50
1/28/21 Farfetch (FTCH) buyers 1500 April $60 calls $9.15 offer
1/28/21 Advanced Micro (AMD) buyer 2000 March 5th (W) $89 calls for $6.80
1/28/21 Peloton (PTON) the March $125/$105 put spread being bought 1000X for $4.80 ahead of 2-4 earnings
1/28/21 Cloudflare (NET) IV rising all afternoon with some big February $95 call blocks trading up over 6300X now
1/28/21 Tesla (TSLA) complex spread sold 1000 March $910 calls and 1000 of the $860/$810 put spreads to buy 1000 April $820 calls, that April call buy for $13M.
1/28/21 Tesla (TSLA) also with 1000 Feb. 26th (W) $1100 calls bought $10.50 to $10.60
1/28/21 Taiwan Semi (TSM) buyer of 1500 February $127 calls this morning $5.10 offer, aggressive buy
1/28/21 Taiwan Semi (TSM) also trading 13,000 April $140 calls $5.80 to $6 offer today large lots
1/28/21 Zillow (Z) with the Jan. 2022 $85 puts sold to open for $8.80 here 1000X
1/28/21 Zillow (Z) with 2800 February $150 calls opening $4.50 with $135 calls adjusting
1/28/21 Fastly (FSLY) early size buys 1500 next week $115 calls $4 to $4.50
1/28/21 Fastly (FSLY) calls quickly over 4500X at over $2M premium
1/28/21 Fastly (FSLY) 1500 Feb $145 calls bought $3.55 as well