Topics covered:
1) 0:00 Announcements
2) 0:55 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 14:50 Stock Review – Watch List/General Ideas/Commentary: APEN, CELC, VRTV, FANG
4) 18:05 Conclusion/Summary

Market Summary:
Over the past two weeks, I’ve been talking about being defensive in the market. In the May 1st Weekend Video, I outlined the reasons why I was expecting a pullback during May/June and so far it is happening. I even did a special webinar for members last night (Tuesday 5/11/21) to reiterate to stay defensive. By defensive, I mean using lighter than normal positions, minimizing new buys, raising cash, and stopping yourself out of any stocks that are decisively below their 10-week moving averages. From here, I still think we need to be defensive. In this video, I discuss the importance of the 50-day moving average, and how the majority of breakouts fail when we are below that level. Of course, I don’t expect this decline to be straight down. The market usually bounces and retraces along the way down, however, what I do expect is continued volatility. Which is why I still suggest using lighter than normal positions, or even taking some time off from trading.

If I can offer any words of encouragement, there will be tremendous opportunities when this correction is over. We simply have to be patient, defensive, and disciplined until market conditions improve. As I’ve said many times, I’m not bearish on this market, I just prefer to wait for the selling to calm down and for more stocks to set up again. One of my goals of this product is to keep you on the right side of the market, and right now, the right side is being defensive. Good luck for the remainder of the week and please do your best to be patient right now.

Unusual Option Activity
5/12/21 Microsoft (MSFT) opening sale 1000 March 2022 $245 ITM puts $27.30/$27.40
5/12/21 Roblox (RBLX) with 400 January 2023 $75 calls bought this morning for $22.80
5/12/21 Schlumberger (SLB) buyer 1500 September $35 calls $1.90 offer
5/12/21 Schlumberger (SLB) also large opening sale 10,000 January $30 puts for $3.35 bid
5/11/21 Shopify (SHOP) buyers of 400 January $900 calls today between $265 and $275
5/11/21 Alphabet (GOOGL) with 300 July $2,250 calls bought for $98
5/11/21 Facebook (FB) buyer 4000 July $305 calls $13.90+ today with $330 calls adjusting back it appears
5/10/21 Applied Materials (AMAT) with 500 January 2023 $120 puts sold to open $20.30
5/10/21 Nucor (NUE) with 1000 January 2023 $62.50 puts sold to open today at $4.40
5/10/21 Align (ALGN) buyer 2000 January $600 calls $64.30 as Oct. $610 adjust 1500X