IBD Podcast Interview: https://www.youtube.com/watch?v=zW3Ope4pOtQ
Zweig Breadth Thrust Statistics: https://twitter.com/RyanDetrick/status/1720577596264710437

Topics covered:
1) 0:00 Announcements
2) 1:00 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 10:40 Commentary on Psychology
4) 17:05 FOCUS LIST: NVDA, MSFT, ADBE, NOW, LLY, NVO, VRTX, UBER, DELL
5) 23:40 Stock Review – Software: IGV (ETF), SNPS, CDNS, QLYS, PANW, CRWD, CRM, MANH, VERX, GWRE
6) 28:00 Stock Review – Watch List/General Ideas/Commentary: SMH (ETF), AVGO, ANET, VRT, META, LULU, CMG, WING, CLS, FN, CELH, RRC
7) 35:00 Conclusion/Summary

Market Summary:
Coming into this week, I was cautious because all the major indexes were below their 200-day moving averages. As always, I am open-minded and flexible when I approach the market. If the market started to firm up, I would be willing to change my mind and put money back to work. Well, things happened very quickly this week, as the market caught many participants offsides. We had a follow through day (FTD) on the Nasdaq Composite on Wednesday, November 1st. As I mentioned in both the MidWeek Video and the Wednesday Webinar, this FTD felt different because it occurred on above average volume vs. the FTDs on 8/29 and 10/6, which were on below average volume. The reason we saw stronger volume is that the market interpreted the Fed is done with their interest rate hiking cycle for now. That gave the green light for the big institutions to put money back to work.

After the FTD on Wednesday, I mentioned that we wanted to see: 1) Little to no distribution. 2) An additional FTD. 3) The major indexes to regain their 50-day moving averages. 4) The price action of stocks to improve. Well, we got all of that during the remainder of the week, as we saw a second FTD on Thursday, and the Nasdaq Comp and S&P 500 regained their respective 50-days on Friday. In addition, we had a rare Zweig Breadth Thrust. This is a technical indicator that bodes well for the market over the next 6-12 months. You can see the statistics in the link above.

I also take some time in this video to review market psychology. Yes, I was cautious coming into the week, but I have to stick to my rules and do my best to protect members. As always, everything is so much clearer in hindsight, as sentiment was very negative coming into the week. However, the lesson here is to be flexible, open-minded, and be willing to adapt when the facts change. That’s why being mentally tough, having no ego, and being able to make decisions are all so important. If you struggle with this, make sure to work on it, make sure your self-talk is strong, and constantly look to improve. Don’t forget, we’re in this to be consistently strong over the long-run.

Coming into the week, I went from under 10% invested, to 50% invested on Wednesday’s FTD, to currently 80% invested. From here, I would expect some sideways consolidation. Specifically, I would like a low-volume pullback into the Thursday before OpEx. If this happens, it could provide some safer entry points for members who are looking to put money to work. I think the rest of the year will be a “buy the dip” market, but remember to stay disciplined. Be patient, focus on the strongest stocks and ETFs out there, and remember to get strong entry points. Use the 21-day as your guide into year-end. Enjoy the rest of your weekend and good luck next week!

Unusual Option Activity:
11/3/23 Russell 2000 ETF (IWM) trading 25,000 Dec 1st (W) $178/$183 bull call spreads
11/3/23 Ark Innovation ETF (ARKK) seeing a massive buyer of 30,000 Jan $45/$51 call spreads buying at $0.87
11/3/23 Tesla (TSLA) seeing buyers for 3400 Feb $255 calls at $11.80 to $13
11/3/23 Tesla (TSLA) also large lot buys for over 5400 Dec 1st $230/250 call spreads at 5.36
11/3/23 Airbnb (ABNB) opening sellers 500 March $115 calls $16.95
11/3/23 Shopify (SHOP) 10500 Dec. 22nd (W) $49 puts sell to open 0.68
11/3/23 Occidental (OXY) opening sale 5000 December 57.50 puts for 0.75
11/3/23 Snowflake (SNOW) with 1200 Dec 1st (W) $135 puts sold to open 4.86 to 4.60
11/3/23 Cloudflare (NET) seeing 400 February $60 puts sell to open $6
11/3/23 Cloudflare (NET) also with 1100 May $785 calls being bought $3.85 offers
11/3/23 Alteryx (AYX) buyer 1500 January $35 calls $2.25, recent reports of possible M&A
11/3/23 Microsoft (MSFT) seeing some opening sales of 4000 Dec 22nd $370 calls at $3.75 bids
11/3/23 Salesforce (CRM) opening sellers of 3400 May $155 puts at $2.90
11/3/23 Applied Materials (AMAT) opening sale of 900 April $165 calls for $5.40
11/2/23 ON Holding (ONON) seeing July $35 calls sell to open 2.70 to 2.60 for 1900X
11/2/23 Celsius Holdings (CELH) opening sellers 575 Dec $165 ITM puts 15.90 into 11-7 earnings
11/2/23 Starbucks (SBUX) seeing 5000 Dec $105/$115 call spreads buy to open
11/2/23 Starbucks (SBUX) also a buy 1100 April $110 calls $3.10
11/2/23 Disney (DIS) block 1200 Sep. 2024 $75 puts sold $4.85 to open
11/2/23 Lyft (LYFT) opening sale 3000 April 10 puts 1.75 ahead of its report next week
11/2/23 Eli Lilly (LLY) opening seller 300 Jan 2025 $470 puts for $30.20
11/2/23 Seagen (SGEN) with 1000 March $195 puts sold to open $4.50
11/2/23 Apple (AAPL) seeing block of 5000 June 2025 $150 puts sell to open 9.05
11/2/23 Elastic (ESTC) with 1450 March $75 puts selling to open for $9.30
11/2/23 Netflix (NFLX) opening seller of 800 May $290 puts for $6.50 bids
11/2/23 Nvidia (NVDA) 41,600 Dec $430 calls closed and 35,000 Jan $380 calls bought to open $73
11/2/23 Snowflake (SNOW) opening sale 2200 Feb $100 puts for 2.28, seeing low Delta put sales in several software names today
11/2/23 Russell 2000 ETF (IWM) buyer of 5000 January $178 calls at $2.48 offers
11/2/23 Nasdaq 100 ETF (QQQ) opening seller for 5000 Dec 2025 $340 puts at $26.95, adjusting Dec 2024 short puts. Willing longs at the recent lows
11/2/23 Gold ETF (GLD) massive buyer for 74,000 December $190/$200 call spreads for $1.29, adjusting some Nov spreads
11/2/23 Gold ETF (GLD) also sells to open 36k of the Dec $175 puts at $0.43, strong confidence that pullbacks hold into year end