Topics covered:
1) 0:00 Announcements
2) 0:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 9:35 Stock Review – Watch List/General Ideas/Commentary: XLE (ETF), XOP (ETF), OIH (ETF), APA, EOG, FANG, DVN, CF, BCC, HES, HAL, BROS
4) 12:15 Conclusion/Summary

Market Summary:
Stay defensive! The major indexes are below their 200-day moving averages, the Fed is still hawkish, and there are no stocks setting up. In this video, I discuss three different scenarios: 1) If you have a heavy cash position and want to trade shorter-term, make sure to use lighter positions and use more of the index/sector ETFs vs. individual stocks. Why? Because 4 out of 5 stocks move with the general direction of the market. Another choice is to just sit out. 2) If you want to scale into a position longer-term, start slowly, accept that you might have to add at lower levels, and also accept that it will likely take some time for positions to come back. 3) If you didn’t cut losses over the past month and you’re still heavily invested, it’s not too late to reduce exposure. I know that taking losses is difficult, but it is part of the game. I’d rather protect capital (and confidence) for healthier conditions.

Regarding today’s Fed meeting, Fed Chair Powell made it clear that his main objective is to fight inflation. I think he will eventually rescue the market but my honest feeling is it will not occur any time soon. If he turns more dovish, it will likely be through time or at lower levels. In other words, the “Powell Put” is no longer in effect. If you have any questions about this, you can ask them during the next webinar. As soon as I finalize the date, I will let everyone know. Thank you and good luck this week!

Unusual Option Activity
1/26/22 Microsoft (MSFT) with 2000 Feb. 25th (W) $315 calls bought $7.20 early
1/26/22 Microsoft (MSFT) 1500 Feb. 25th (W) $310 calls bought $9 as well
1/26/22 CrowdStrike (CRWD) with 300 May $185 ITM puts sold to open today for $31.90, over $1M
1/26/22 Oil Services ETF (OIH) with 2000 February $240 calls sold $10 to open this morning
1/26/22 S&P 500 ETF (SPY) block of 7000 March $467 calls was sold $3.20 to open
1/25/22 Microsoft (MSFT) with 9650 March $250 puts sold to open $6.15
1/25/22 Dutch Bros (BROS) with over 1125 March $45 puts sold to open today for $4.30
1/25/22 Diamondback Energy (FANG) with 1100 January 2023 $130 calls sold to open $23.20
1/25/22 Merck (MRK) with 3400 January 2023 $87.50 calls sold to open for $4.20
1/24/22 Apple (AAPL) with 6,000 February 25th (W) $160 calls sold to open this morning for $7.60
1/24/22 Freeport McMoRan (FCX) buyer of 10,000 February $42 calls for $1.32, adjusting back the $45 calls
1/24/22 Freeport McMoRan (FCX) also with 3275 May $45 calls bought for $2.16, adjusting back the $50 calls
1/24/22 Freeport McMoRan (FCX) late day opening sale 1500 Jan. 2024 $35 puts for $7.75
1/24/22 Devon Energy (DVN) with 1,700 February $41 puts sold to open today between $1.70 and $1.67
1/24/22 Marathon Oil (MRO) the March $17 puts being sold to open today 2000X for $1.40
1/24/22 Nasdaq 100 ETF (QQQ) buyer 35,000 February $335/$305 put spreads as $360/$330 adjust
1/24/22 Visa (V) spreads sold 1500 April $175 puts to buy $215/$235 call spreads
1/24/22 MasterCard (MA) similar spread to V with 1000 April $300 puts sold to buy $370/$415 call spreads
1/21/22 Sprout Farmer Market (SFM) opening sale 1000 June $28 puts for $2.30
1/21/22 Devon (DVN) with 1400 March $45 calls being bought $4.70 late day