Topics covered:
1) 0:00 Announcements
2) 0:35 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 21:40 Stock Review – Watch List/General Ideas/Commentary: PSTG, QLYS, STX, STZ, TENB, IBKR, SMH (ETF)
4) 24:45 Stock Review – Biotech: XBI (ETF), IBB (ETF), NKTX, ITOS, BCYC, INBX, MGTX, MRUS, TSVT, TVTX
5) 29:25 Conclusion/Summary

Market Summary:
The two main reasons I’ve been mostly bullish on this market since the April 2020 low are: 1) The strong technicals (both in the indexes and individual stocks) and 2) The Fed was on the side of the market. Over the past two weeks, these two factors have changed and the market is telling me to be cautious and defensive until we see healthier conditions. Specifically, the Nasdaq Composite is now below its 10-week moving average and has seen heavy distribution in 2 of the past 3 weeks. In addition, there are very few stocks setting up in the growth world. Regarding the Fed, they have provided a very equity friendly environment since April 2020 by keeping interest rates low and pumping tons of liquidity into the system. In recent weeks, they said they would reduce or “taper” that liquidity, and the market is now pricing in three rate hikes in 2022. It doesn’t mean they WILL raise rates, it just means to be patient until we get more clarity or they shift back to a more dovish stance.

From here, these negative factors don’t necessarily mean that we HAVE TO correct. In fact, the main positive is that the S&P 500 is still above its 10-week and showing incredible resilience. Please keep in mind that we can correct through time, and we can still see a potential “Santa Claus” rally towards the end of December before potentially heading lower. Rather than predict, I prefer to wait for the selling to calm down and for growth stocks to show better strength. I still suggest using caution and I explain in this videos ways to remain defensive. Don’t get discouraged. I will always work for you and stay on top of the market. One of my strengths is to identify those power trends when the market health improves and to lead you into some of the strongest stocks. We just have to be patient until that scenario lines up again. Enjoy the rest of your weekend and good luck this week!

Unusual Option Activity
12/17/21 Airbnb (ABNB) opening seller 350 Dec. 2022 $150 puts for $26.75
12/17/21 Airbnb (ABNB) also with a large opening sale of 900 July $150 puts for $19.90
12/17/21 Pfizer (PFE) buyer 1000 Jan. 14th (W) $59 calls $3.40
12/17/21 Abbott (ABT) with 1000 January 2023 $150 calls being bought $10.60 to $11.20
12/17/21 AbbVie (ABBV) with 2450 May $125 calls opening today near $10 as Feb $115 adjust
12/17/21 InMode (INMD) with 2850 May $50 puts sold to open into recent weakness
12/17/21 Apple (AAPL) sale to open 6000 Jan. 28th (W) $170 puts $7.50 which is always a popular strategy in the name lately
12/17/21 Apple (AAPL) opening seller 5000 June $165 puts for $11.90
12/17/21 Acadia (ACAD) recent impressive strength with late day buyer 5000 January $26/$35 call spreads
12/16/21 S&P 500 ETF (SPY) large opening buy this morning 4100 May $475 calls for $19.63
12/16/21 Eli Lilly (LLY) with 1,000 February $250 puts sold to open today for $4.30 to $4.25 ahead of their Alzheimer’s decision next year
12/16/21 Pfizer (PFE) strength continues and 1100 Dec. 31st (W) $55.50 calls bought $3.40
12/16/21 Vertex (VRTX) with 325 September $220 calls bought for $24, closing the $180 calls and adjusting higher
12/16/21 Snowflake (SNOW) with 750 March $235 puts sold to open today for $5.50 to $5.40 and follows put sellers yesterday too
12/16/21 Snowflake (SNOW) also with 6000 January $350 calls opening $15.50 as those Jan. $380 calls adjust back
12/16/21 Ford (F) with 40,000 February $22/$27 call spreads opening today
12/16/21 Applied Materials (AMAT) seeing 1000 January 7th (W) $145 ITM calls open for $9.35 to $9.50 today as some December calls roll up and out
12/16/21 Nvidia (NVDA) with 1100 Jan. 28th (W) $365 calls bought $4.50 to $5 to open
12/16/21 Apple (AAPL) buyer of 1000 July $210 calls $5.50 to $5.55
12/16/21 Apple (AAPL) also seeing a large opening sale of 10,500 January 2023 $170 puts for $19.55 to $19.45
12/16/21 Unity Software (U) with 2250 May $120 puts sold to open late day on $14.20 to $14 bids
12/16/21 Nutrien (NTR) spreads are selling 1000 June $65 puts to buy 1000 of the $75/$90 call spreads today and has the 20,000 June 80/105 call spreads in OI