Latest Yahoo Finance article and interview: https://finance.yahoo.com/news/why-we-have-exactly-the-fuel-we-need-for-a-year-end-rally-125224451.html
Topics covered:
1) 0:00 Announcements
2) 0:40 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 11:55 Stock Review – Semiconductors: SMH (ETF), NVDA, AMD, PI, ACLS, ON, MRAM
4) 14:50 Stock Review – Mega Caps: AAPL, MSFT, GOOGL, QQQ (ETF)
5) 15:40 Stock Review – Software: DDOG, U, SNOW, PANW, RBLX, NET
6) 20:25 Stock Review – Watch List/General Ideas/Commentary: GLBE, ALB, ENVX, FND, IBKR, MP, MTH, EXR, PSA
7) 26:30 Conclusion/Summary
Market Summary:
The biggest challenge with the market right now is that the major averages are holding up well, but many growth stocks are in corrective phases (almost bear market-like). We are seeing this divergence because of sector rotation. While money is moving out of high-flying growth stocks, it is rotating into other sectors such as Materials, Financials, Utilities, etc. Also, the heavy weighting of Apple and Microsoft on the indexes is helping to mask the damage beneath the surface. How do we deal with this? One way is to be patient and simply accept that not every strategy is going to work all the time. In other words, there are times when Value outperforms Growth and vice versa. Another strategy is to keep positions in ETFs (Index and/or Sector ETFs) to give you broad exposure to the market until the price action in growth stocks improves. As I mention in this video, I encourage members to make these decisions on their own to help develop their personal strategy/investment plan and also to help build confidence.
From here, I am going to wait patiently until we see better signs of the large institutions coming back into the market. It would be ideal to see a Follow Through Day (FTD) this week, but we will likely have to wait until Wednesday’s Fed meeting to get more clarity on their monetary policy. I still have a large cash position, but I’m ready to put money to work if we see better price action from growth stocks. I don’t mind being patient because if we get a FTD, there will be plenty of time to make money during a potential year-end rally. Again, for growth stock traders, patience and discipline is required. Lighter positions can help to minimize frustrations until we get more clarity. Thank you and enjoy the rest of your weekend!
Unusual Option Activity
12/10/21 Perion (PERI) trading another 5000 April $22.5/$30 call spreads with the $20 puts sold to open
12/10/21 Apple (AAPL) seeing 2950 February $185 ITM puts sell to open $14.80 to $14.30 in early action
12/10/21 Lithium Americas (LAC) with 1200 May $22.50 puts sold to open for $1.92
12/10/21 Advanced Micro (AMD) with 1000 July $130 puts sold to open for $16
12/10/21 Adobe Systems (ADBE) spread buys 1000 January $545 puts for $5.75 and sells 400 of the January $690 calls for $14.40/$14.35 to open
12/10/21 AbbVie (ABBV) buyer of 14,000 Feb $130 calls for $2.99 and 14,000 Feb $140 calls for $0.91, adjusting some Jan $120 and $130 calls higher
12/10/21 Academy Sports (ASO) with 7500 Dec. $44.50 calls bought into morning lows as weekly positions adjust
12/10/21 Russell 2000 ETF (IWM) with 3050 September $205 puts sold to open $12.98
12/9/21 Apple (AAPL) buyer 8500 Dec. 31st (W) $172.5 calls for $6.34 adjusting Dec. 10th (W)
12/9/21 Perion Networks (PERI) the April $20 puts being sold to open 1250X this morning to buy the $22.50/$30 call spread
12/9/21 Nvidia (NVDA) large afternoon opening sale 500 September 2022 $290 puts for $40.80
12/8/21 Broadcom (AVGO) opening seller 550 July $540 puts for $33 in a large trade