Topics covered:
1) 0:00 Announcements
2) 0:30 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 10:20 Stock Review – Watch List/General Ideas/Commentary: SMH (ETF), ACLS, TSEM, PI, MU, MP, XOP (ETF), FCX, CC, LITE, ST, PFE
4) 16:25 Conclusion/Summary

Market Summary:
We had an ugly open on Monday followed by a lighter and lighter volume recovery on Tuesday and Wednesday. I still think it’s worth being defensive until we see healthier conditions. I received some emails from members expressing that there aren’t enough stock ideas. In this video, I discuss my response to this: 1) Please keep in mind this is an Educational Product. As much as I love to give ideas and help people make money, my main priority is to help members with their overall market analysis. 2) Remember that the market is only healthy 2 to 3 times per year. The rest of the time, the main objective should be to protect capital and reduce position size during the corrective periods. I’m not going to force ideas when there are none to give. 3) I realize the challenge right now is that growth is in a correction and value is in an uptrend. Usually, most stocks move together. One way to deal with this divergence is to own the index and/or sector ETFs. If you want to trade individual stocks, just use lighter positions, get strong entry points, and manage risk based on your investment objectives and timeframe.

My final comment is to be patient. The market is not designed to just give money away all the time. When conditions improve, I’m confident that I will identify them and pass along PLENTY of ideas to members. In the meantime, this is not the time to be a hero. Protecting capital is important because it also helps to protect your confidence. I remain 20% invested in some ETFs and individual stocks. I’m still waiting patiently for better opportunities. Good luck for the remainder of the week!

Unusual Option Activity
1/12/22 Ford (F) buyers active in Feb. 4th (W) $27.50 calls 17,000X
1/12/22 Ford (F) also with a buyer of 20,000 March $26/$31 call spreads
1/12/22 Diamondback Energy (FANG) buyer of 1750 March $135 calls $6.10 to $6.40 into morning lows
1/12/22 Exxon (XOM) with 10,000 February $75 calls sold to open for $0.85 today
1/12/22 Chevron (CVX) with 10,000 February $135 calls sold to open this morning for $1.15 to $1.13, similar to XOM earlier
1/12/22 Freeport McMoRan (FCX) 4,500 May $50 calls bought for $2.77 to $2.80
1/12/22 Nvidia (NVDA) with a buyer of 1000 April $285 calls this afternoon for $24.75, spread with the $340 calls
1/12/22 Micron (MU) buyers today of 1000 February 25th (W) $97/$105 call spreads for $2.40
1/11/22 Bank of America (BAC) buyer of 2000 April $48 calls for $3.10 today, adjusting higher some positions into earnings on 1-19
1/11/22 Schlumberger (SLB) the June $40/$47.50 call spread bought 7000X this morning for $1.35 into 1-21 earnings
1/11/22 Lucid (LCID) buyer of 1000 April $50 OTM calls today for $5 to $5.10
1/11/22 Springworks (SWTX) large spread sold 2000 February $45 puts to buy 2500 February $60/$70 call spreads
1/10/22 Software ETF (IGV) with 4000 February $340 puts opening this morning $11.30, also 2000 February $310 puts sold
1/10/22 Microsoft (MSFT) large opening buys this afternoon of 5000 January 2023 $285 ITM calls from $51.40 to $53.40, over $28.5M
1/7/22 Tesla (TSLA) buyers of 1500 May $1,225 calls for $89 to $91.50
1/7/22 Taiwan Semi (TSM) large buyer of 5000 May $110 ITM calls for $18.90