Topics covered:
1) 0:00 Announcements
2) 0:20 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 6:30 FOCUS LIST: XBI (ETF), CELH, SWAV, HALO
4) 12:05 Stock Review – Watch List/General Ideas/Commentary: EVH, MNST, GH, LNTH, PRCT, IRTC, ARKG (ETF), XENE, DICE, NGM, GBT, MPWR, ON, PI
5) 18:55 Conclusion/Summary

Market Summary:
The price action so far this week has been strong. The market pulled back on lighter volume on Monday and Tuesday. Similar to last week, many of the leading stocks acted well beneath the surface during this pullback. On Wednesday (today), the Nasdaq Composite saw a strong gain on above average volume. The problem now is the market is short-term extended. This is where you have to make decisions based on whether you’re a trader or investor. For example, with existing positions, you need to decide whether to take full profits, partial profits, or keep trailing stops. If your timeframe is longer-term, then hopefully you have some strong entry points and have a cushion to deal with normal pullbacks. Overall, I’m not encouraging new buys right now because the risk/reward isn’t great with the market short-term extended.

In this video, I also review some common questions I’ve received in recent webinars. Many members are asking me if it’s ok to “buy here” and I would like to stress using the 21-day EMA as your guide. PLEASE DO NOT CHASE EXTENDED STOCKS. Of course, extended can get more extended, but I’m just trying to help with probabilities. Also, if you’re worried about buying into a pullback, keep in mind you can buy a smaller than normal position to help build your confidence and slowly overcome your fears. As you know, I’m trying to help build calm and confidence traders, and by learning how to make small decisions, this will go a long way towards building your confidence. Thank you and good luck for the remainder of the week.

Unusual Option Activity:
8/3/22 Russell 2000 ETF (IWM) opening sellers 13,000 October 180 puts for $7M premium
8/3/22 S&P 500 ETF (SPY) early buyer 2000 Aug. 31st (W) $415 puts for $10.71 if looking for a fade play
8/3/22 Tesla (TSLA) with $60M in Sep. 2nd (W) 785 calls opening as the Aug. 12th (W) 770 calls adjust from a buy on 7/29
8/3/22 Global Foundries (GFS) aggressive buy of 1000 January 80 calls $1.98 above offer and far OTM
8/3/22 Irhythm Tech (IRTC) spread buys 1500 Aug 160 calls at $6.60 and sells 2000 of the $180 calls at $0.90 continuing bull flow in it, earnings 8-4
8/3/22 Evolent Health (EVH) strong move on earnings and seeing 500 March ITM $40 puts sold to open down to $6.60
8/3/22 Apple (AAPL) early buyer 15000 Sep. 2nd (W) $162.50 calls $4.90
8/3/22 Palo Alto (PANW) opening sale 250 March $450 puts for $32.30
8/3/22 Microsoft (MSFT) seeing 1200 November 285 puts sell to open 17.55
8/2/22 Energy ETF (XLE) buyer 3000 June $81 calls for $8 also seeing Aug 2023 $70 puts sell to open 3000X
8/2/22 Tesla (TSLA) seeing 3900 of the September 2nd $1100 calls bought up to $13.35
8/2/22 Twitter (TWTR) trade opens 1200 September $20 ITM calls $21.15
8/1/22 S&P 500 (^SPX) with 7000 November $4150/$4425 call spreads opening this morning
8/1/22 Microsoft (MSFT) opening seller 1000 Sep. 2nd (W) 275 puts for $6.20
8/1/22 ChargePoint (CHPT) large buyer of 10,000 Aug $16 calls at $0.68 with 5000 of the August $14.50 puts sold to open at $0.81
8/1/22 Amazon (AMZN) buyer of 4000 December $140 calls $12.18 taking some profits in Oct. $110 calls and leaving a runner
8/1/22 Google (GOOGL) buyer 1175 January 2024 $149 calls for $8.10
8/1/22 Google (GOOGL) also buyer 20,000 November $117.50 calls $7.70 as the August $115 adjust
8/1/22 Celsius (CELH) buyer of 1000 June 2023 $130 calls $15.10, stock replacement
8/1/22 Tesla (TSLA) 2500 March $1850 calls bought at the open at $15 up to $15.50, far OTM spec buys
8/1/22 Taiwan Semi (TSM) buyer 11,000 August 83/74 put spreads for $1.47 into Pelosi visit