Topics covered:
1) 0:00 Announcements
2) 0:25 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:00 Stock Review – Watch List/General Ideas/Commentary: CVX, XOM, XLF (ETF), EOG, FANG, DVN, XOP (ETF), HAL, SLB, OIH (ETF), XLF (ETF), KRE (ETF), UNP, CSX, NSC, UPS, IYT (ETF), XLU (ETF)
4) 15:30 Conclusion/Summary

Market Summary:
Stay defensive! While doing my work this weekend, I noticed that the major indexes continue to see distribution and the one that is holding up the best (the Dow Jones Industrial Average) is made up mostly of defensive and value stocks. While going through my screens, the majority of stocks acting well are coming from Defensive/Cyclical sectors such as Energy, Chemicals, Financials, Regional Banks, and Rails/Transports. Here are some options with these stocks: 1) Pass and don’t trade them or 2) If you want to trade them, keep your positions light, get strong entry points, and always manage risk. Another option is to use some of the ETFs presented, but also get strong entry points if you buy them. I am choosing to pass on these stocks because I feel the market is going lower and most stocks move with the general direction of the market. In other words, I’m not interest in getting too involved in this market when there are too many headwinds right now.

I remain 10-20% invested and I’m going to wait patiently for healthier conditions. If I can offer some words of encouragement, there will definitely be another strong uptrend for growth stocks. The key is to be patient and show some discipline until better signs show up. If you are struggling in the market, reduce your position size and maybe take some time off to prepare yourself mentally for the next powertrend. It’s important to protect your confidence and stay mentally tough so you don’t hesitate when better opportunities present themselves. Thank you and enjoy the rest of your weekend.

Unusual Option Activity
1/7/22 ON Semi (ON) seeing 2000 February $65 calls open for $4.45, rolling back the $70 calls
1/7/22 Micron (MU) buyer of 1000 September $97.50 calls for $12
1/7/22 Apple (AAPL) with 6000 Feb. 4th (W) $172.5 puts being sold to open $5.40
1/7/22 Snowflake (SNOW) 1,000 March $310 calls bought $27.50 to $28 to open
1/7/22 Norfolk Southern (NSC) buyers earlier of the January $295 calls for $5.20 to $5.30, over 1000X
1/7/22 J&J (JNJ) buyers of 2,500 March $175 calls this morning from $3.35 to $3.55 ahead of earnings on 1-25
1/7/22 Schlumberger (SLB) with 3700 January $34 puts sold to open mid-day for $0.73, earnings on 1-21
1/7/22 Devon Energy (DVN) buyer of 26,000 April $55 calls for $2.85, closing more of the January $40/$50 call spreads
1/7/22 EOG Resources (EOG) with 1000 April $83 puts sold to open $2.92 to $2.85
1/7/22 Financials ETF (XLF) buyer of 15,000 April $42 calls for $1.30 and follows the May $40 call buys yesterday
1/7/22 Chemocentryx (CCXI) with sellers of the January $38 puts into the lows of the day for $2.85, over 1300X
1/6/22 Financials ETF (XLF) sweep buyers 3500 May $40 calls $2.49 offer
1/6/22 Financials ETF (XLF) also seeing 55,660 Feb. $40 calls adjust to 69,000 Feb $42 calls
1/6/22 Eli Lilly (LLY) seeing 1650 February $250/$240 bull put spreads open near a $3 credit
1/6/22 Devon Energy (DVN) with 28,500 April $50 calls opening as January $40/$50 spreads adjust, $11.5M position
1/6/22 Halliburton (HAL) with 4800 February $25 puts sold to open today as the January short puts adjust
1/6/22 Dow Jones ETF (DIA) opening sellers of 4500 January 2023 $290 puts down to $9.60
1/6/22 Biotech ETF (XBI) with 2500 March $105 puts selling to open for $6.75
1/5/22 Snowflake (SNOW) with 6000 March $330 calls bought $17.50 to open as the $350 calls adjusted back again
1/5/22 Apple (AAPL) late day opening sales 10,000 Feb. 4th (W) $165 puts for $2.60
1/5/22 Netflix (NFLX) opening sale 250 March 2023 $550 puts for $71.20
1/5/22 Nvidia (NVDA) block of 500 Jan. 2024 $280 puts sold to open for $66.50