Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 11:10 Stock Review – Energy: XLE (ETF), XOP (ETF), OIH (ETF), USO (ETF), OXY, DVN, MRO, MPC, VLO, EQT
4) 14:50 Stock Review – Watch List/General Ideas/Commentary: ALB, LTHM, LLY, BMY, MRK, ALKS, TPTX, SWTX, PRCT, LNTH, HALO, CELH, SMCI, ZIM, ON, HSY
5) 22:00 Conclusion/Summary

Market Summary:
In this video, I review the positives and negatives in the market. The biggest negatives are: 1) The hawkish Fed (raising rates and taking liquidity out of the system). 2) The weak technicals, as the major indexes are still below all their key moving averages. 3) Very few growth stocks setting up. 4) The ongoing geopolitical tensions. The positives are: 1) There are some growth stocks forming bases but likely need time before proper buy points. 2) Sentiment is not at extremes but getting very negative. 3) There were some subtleties in the index price action which I review starting around the 2:15 mark.

The conclusion is the same. Stay defensive and be patient. I stick with my stance that we won’t see any SUSTAINED uptrend until the Fed is done or at least pauses this rate hiking cycle. In this video, I show some historical examples of how valid follow through days mostly come after a shift in Fed policy. I also discuss an email conversation I had with a very sharp friend about the importance of being patient and keeping positions super light during this correction. If you have any questions, you can ask during the upcoming webinars. There will be one on Sunday, May 22nd at 11AM EST and another one on Tuesday, May 24th at 7PM EST. Thank you and enjoy the remainder of your weekend.

Unusual Option Activity
5/20/22 Amazon (AMZN) seeing 1250 June 10th (W) $2500 calls bought up to $14.45
5/20/22 Taiwan Semi (TSM) buyers of 1100 October $95 calls $6.35
5/20/22 Taiwan Semi (TSM) also buyer 1400 June 2023 $115 OTM calls for $4.75
5/20/22 Guardant Health (GH) with 1000 June $40 calls being bought late day for $2
5/20/22 Apple (AAPL) buyers 10,000 June 10th (W) $150 calls for $1.20
5/20/22 EQT Corp (EQT) size buy 6100 January $50 calls for $5.10
5/20/22 Merck (MRK) opening sale 1000 October $90 puts for $4.75
5/20/22 Western Digital (WDC) more bull flow with 1820 July $62.50 calls bought up to $2.50
5/20/22 Springworks (SWTX) buyer of 2000 June $45/$60 call spreads for $4.35 ahead of their R&D day on June 10
5/19/22 Apple (AAPL) buyer 20,000 July $140 calls for $8
5/19/22 Apple (AAPL) also opening seller 1450 Dec. $120 puts for $7.20
5/19/22 Nasdaq 100 ETF (QQQ) June 310/335 call spreads trade 35,000X at $3.60
5/19/22 Biotech ETF (XBI) with 9250 August $80/$55 bull risk reversals opening
5/19/22 Marathon (MRO) aggressive buy of 2000 October $35 calls at $1.75 offer
5/19/22 IntraCellular (ITCI) seeing 500 January $55 puts sell to open $10.10
5/19/22 Microsoft (MSFT) with 1,425 March $170 ITM calls bought for $93.45 to $93.70, over $13.5M
5/19/22 Marathon Petro (MPC) buyer of 1150 September $110 calls for $3.92
5/19/22 Nvidia (NVDA) with 2000 September 2023 $375/$435 call spreads 2000X
5/19/22 CrowdStrike (CRWD) opening sale 770 September $110 puts for $10
5/19/22 ZScaler (ZS) opening seller of 865 Sep. $100 puts for $11.10
5/19/22 ZScaler (ZS) also August $90 short puts opening 670X at $6.05 as the cyber security put sales continue
5/18/22 Datadog (DDOG) with 1250 October $60 puts sold to open for $6.05
5/18/22 PayPal (PYPL) late day opening seller 1500 July $72.5 puts for $5.40
5/18/22 CF Industries (CF) with late day opening sales of 1200 August $95 puts $8.70