Topics covered:
1) 0:00 Announcements
2) 0:25 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 17:35 Conclusion/Summary

Market Summary:
Coming into the year, I discussed being patient for one main reason: I was finding very few growth stocks setting up outside of the Semiconductor sector. As you know, I judge the health of the market mainly on the price action of stocks and I was waiting to observe 1) If we would see more stocks set up, build bases, and break out (to help us move higher out of this recent range) or 2) If we would see selling when the institutional volume kicked in at the beginning of January (to break down below the recent range). Unfortunately, the latter is happening and it is very important to remain patient and defensive right now.

The main reason for the market weakness is the hawkish Fed. They said today that they might reduce their balance sheet and this caught the market off guard. In this video, I discuss there are several scenarios that can happen during Q1. Rather than speculate, we need to be patient until the Fed changes their tune to a more dovish/accommodative one. I came into the week approximately 40% invested and reduced to below 10% today. I explain my reasoning in this video. As always, do what works for you and your own investment objectives. I’m simply not interested in fighting the tape and fighting the Fed right now. I’m confident that there will be great opportunities later this year. The key is to be patient and defensive until healthier conditions show up. If you have any questions, you can ask them during the next webinar which will be this Saturday, January 8th at 11AM EST. Thank you and good luck for the remainder of the week.

Unusual Option Activity
1/5/22 Micron (MU) strong early and seeing 1300 January $98 calls bought for $3.10 to open
1/5/22 Devon Energy (DVN) buyer of 3,700 July $50 calls today for $5.25, some February calls adjusting out and up
1/5/22 Alnylam Pharma (ALNY) with 750 January 2023 $105 puts sold to open for $7.85 today
1/4/22 Netflix (NFLX) buyer 350 Feb. $590 calls into weakness for $28.07 to $28.66
1/4/22 Pfizer (PFE) buyers today of 1700 April $55 calls for $3.65
1/4/22 Wells Fargo (WFC) buyer of 11,000 February $55/$60 call spreads as some $50 calls adjust
1/4/22 Ford (F) buyer 1510 September $26 calls for $2.85
1/4/22 Nasdaq 100 ETF (QQQ) opening seller of 2000 June $402 puts for $25.20
1/4/22 Energy ETF (XLE) block of 5,495 May $65 calls bought for $1.69 to open
1/4/22 Devon Energy (DVN) buyers of 1285 Feb $46 calls for $3.35 to $3.50, follows the $45 calls bought recently 1000X
1/4/22 Schlumberger (SLB) with 1,500 June $32.50 puts sold to open this afternoon for $3.10 to $3.05
1/3/22 eBay (EBAY) opening sale 725 January 2024 $55 puts for $5.90
1/3/22 Nvidia (NVDA) late day buyer 3000 July $320/$400 call spreads for $20
1/3/22 Apple (AAPL) opening put sellers at it again today with 8500 Feb. 4th (W) $175 the choice as 8500 trade $3.45 to $3.40
1/3/22 Enovix (ENVX) with 1000 April $22.50 puts sold to open today for $2.55
1/3/22 Diamondback Energy (FANG) with 1,000 March $100 puts sold to open today for $5.30
1/3/22 S&P 500 ETF (SPY) buyers in size just before 10am for 10,000 Jan. 31st (W) $482 calls for around $3.9M paying $3.26 to $3.40
1/3/22 Micron (MU) buyers this afternoon of 3000 January $94 calls for $3.60 to $3.80