CBOE Equity Only chart: https://stockcharts.com/h-sc/ui?s=$CPCE
Historical CPCE chart: https://twitter.com/jonathanharrier/status/1573692242560172035
Topics covered:
1) 0:00 Announcements
2) 0:15 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 13:00 Stock Review – Watch List/General Ideas/Commentary: XBI (ETF), CELH, PRCT, ENPH, STAA, AXNX, PRVA, EVH, PI, ALB, LTHM, ENVX, WOLF, SWAV, CALM
4) 17:55 Conclusion/Summary
Market Summary:
In this video, I review the weak technicals (below the 50-day and 200-day moving averages). Those levels are important because they are areas of institutional support. The main reason I’ve discussed being defensive is that the big institutions are clearly not supporting this market. Fundamentally, the Fed is still raising rates and adamantly fighting inflation. You can argue with it all you want, but the bottom line is “Don’t Fight the Fed!” My feeling is we will see a SUSTAINED uptrend once the Fed verbally announces that they will stop or pause their current rate hiking cycle.
As I mentioned in last weekend’s video, I came into the week with over 90% cash. I sold my remaining positions last week because the market was getting to them one at a time. In other words, I was doing my best to keep a list of growth stocks holding up well, but the market is ruthless right now and almost all of these stocks are breaking down. The conclusion is the same: STAY DEFENSIVE! I’m glad to see that sentiment is getting more fearful, but I still want to wait for the selling to stabilize before getting back into this market. I’m confident that there will be strong opportunities soon, but it will require some patience and discipline until conditions improve. Thank you and enjoy the rest of your weekend!
Unusual Option Activity:
9/23/22 Tesla (TSLA) large trade sold 1200 April $200 puts to open for 16.85
9/23/22 Ford (F) with 16,100 December $13 calls bought $0.77
9/23/22 Apache (APA) opening seller 1000 November $32.50 puts $3.30
9/23/22 EQT (EQT) with 12,000 December $39/$35 put spreads bought to open
9/23/22 Pfizer (PFE) with 3350 March $47.5 calls bought $2.10
9/23/22 ON Semi (ON) buyers 1550 November $55 puts $2.95 offer
9/23/22 Impinj (PI) unusual 1200 October $80 puts bought $4.80+
9/23/22 Microsoft (MSFT) buyer 10,000 Oct. 28th (W) $220/$180 put spreads, captures next earnings report
9/22/22 Ark Innovation ETF (ARKK) opening sale 10,000 November $35 puts for 1.98
9/22/22 Lithium ETF (LIT) buyer 2000 January $67 calls for $9
9/22/22 Valero (VLO) with 2175 October $90 puts bought $1.15
9/22/22 Schlumberger (SLB) seller of 1600 February 27.50 puts to open for 0.99
9/22/22 Cardinal Health (CAH) with 675 January 2024 $70 calls bought $8.30
9/22/22 Apple (AAPL) opening sale 20,000 October $152.50 calls $6.40 to $6.30
9/22/22 Apple (AAPL) also seeing 10,000 October 28th $150 puts sold to open at $6.45
9/22/22 Adobe (ADBE) seeing 775 March $280 puts sell to open near 27.40