Topics covered:
1) 0:00 Announcements
2) 0:40 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 15:45 FOCUS LIST: NVDA, DELL, MSFT, VRT, LLY, NVO, ISRG, MU
4) 20:15 Stock Review – Software and Semiconductors: IGV (ETF), APP, SNPS, NOW, CRWD, SMH (ETF), PI, TSM, AVGO, KLAC, ARM
5) 23:40 Stock Review – Biotech/Medical Products: XBI (ETF), NBIX, CRNX, MRUS, NTRA, TMDX, RXST, PRCT, BSX, UTHR
6) 26:05 Stock Review – Restaurants: WING, CMG, CAVA, SG, TXRH, DPZ
7) 27:50 Stock Review – Aerospace/Defense: AVAV, LDOS, HWM, WWD, FTAI
8) 29:50 Stock Review – Watch List/General Ideas/Commentary: GOOGL, NFLX, VRTX, DECK, ONON, JPM, GS, C, BKNG, VST, CEG, NRG, MOD, ASPN, CAMT, CLS, NTAP, PSTG
9) 34:20 Conclusion/Summary

Market Summary:
One of my biggest rules during a power trend is “use the 21-day EMA as your guide.” In other words, when the Nasdaq Composite gets 3-4% extended from its 21-day, don’t be surprised to see a pullback. In recent videos, I mentioned that the Nasdaq could use end-of-the-month profit taking as an excuse for a pullback, and that’s exactly what we saw at the end of May. These normal 2-5% pullbacks to the 21-day can happen quickly over 1-3 days. The challenge is that some members are telling me they are losing 10-20% of their portfolio during these quick, but normal pullbacks. The problem is one word: leverage. Members are using margin, oversized positions, options, futures, etc. and that is resulting in drawdowns that are significantly higher than the markets. If this is happening to you, and you are bothered by the higher volatility, then I suggest reducing your leverage, especially when the market is short-term extended. Please remember that Rome wasn’t built in a day and we are in this for consistent, slow and steady progress.

If this is not happening to you, and you are not using leverage, then you have two options when the market gets extended: 1) If you are longer-term, get strong entry points and deal with the normal pullbacks and volatility. 2) If you are shorter-term, tactical, can watch the market closely, and want to vary your investment levels, then take some profits into strength and look to buy some back on support. How much profits should you take? Again, there is no right or wrong answer. As I have mentioned many times, all these common questions can be answered by learning to make decisions that work for your situation, and learning to be ok with your decisions. We’re never going to get the high or the low. We just have to do our best to navigate our portfolio based on our timeframe and overall investment objectives. Either way, getting those strong entry points is very important and can make your decisions easier when you have a cushion to work with.

From here, I would like to see the selling stabilize on the Nasdaq Composite. I like how we closed above the 21-day after Friday’s shakeout, and I also like how the S&P 500 held its 10-week and recovered to close above its 21-day. Those are positive signs, but I would still like to see how the market reacts over the next few days, especially considering that June is one of the weaker months of the year. In this video, I review some of the stronger relative strength names that held up well during this recent pullback. If you have any questions, you can ask them during the next webinar which will be this Monday, June 3rd at 7PM EST. Thank you and enjoy the rest of your weekend.

Unusual Option Activity:
5/31/24 Nasdaq 100 ETF (QQQ) 4400 Jan $460 calls bought at $25.23 and sells the $500 calls which like are adjusting
5/31/24 Nasdaq 100 ETF (QQQ) large opening sale of 5000 August $460 puts at $19.85
5/31/24 Nasdaq 100 ETF (QQQ) 1300 Dec $492/$424.78 bullish risk reversals open at $3.28 credits
5/31/24 Energy ETF (XLE) buyer into the close of 8000 Dec $107 calls at $1.28, over $3.8M
5/31/24 Biotech (XBI) buyer of 1000 December 2026 $99 calls at $14.25, over $1.4M
5/31/24 Hims and Hers Health (HIMS) August $19 calls active again with 8250X bought near $3.40
5/31/24 Hims and Hers Health (HIMS) buyer 3000 August $30 calls for $1
5/31/24 Hims and Hers Health (HIMS) 1180 November $22 calls bought $3.70 offer
5/31/24 Target (TGT) with 500 Dec 2025 $160 puts sold to open $21.90
5/31/24 Walmart (WMT) opening sale 1200 Jan 2026 $65 puts for $5
5/31/24 Walmart (WMT) also buyers of 1600 June 28th $65 calls at $0.80 to $0.85
5/31/24 Shopify (SHOP) buyer 600 Sept 2025 $70 calls for $10
5/31/24 Gap (GPS) seeing buyers of 2600 Jan $40 calls at $1.60
5/31/24 Starbucks (SBUX) large buy 3770 June 2026 $80 calls $13.25
5/31/24 CAVA Group (CAVA) buyer 1000 June 7th (W) $95 calls $3.30
5/31/24 AppLovin (APP) sees 1000 July $82.5 calls buy $4.30 offer
5/31/24 Blackstone (BX) opening seller of 400 February $100 puts at $5.20
5/31/24 Eli Lilly (LLY) with 475 August $830 calls bought $42.50 to $43.35
5/31/24 Natera (NTRA) with 850 August $115 calls bought for $750K with July 100 rolling out and up
5/31/24 Biogen (BIIB) with 500 January $210 puts sold to open 11.80 to 11.50
5/31/24 Biogen (BIIB) also with 200 June 2025 $200 puts sold to open for $10.10
5/31/24 J&J (JNJ) seeing 3200 July $150 calls buy at $2.50 to $2.60
5/31/24 Marathon Petro (MPC) buyer 750 December 2026 $160/$110 put spreads
5/31/24 Arm Holdings (ARM) large buyer of 1000 January $145 calls at $16.75 to $17.10
5/31/24 Arm Holdings (ARM) also seeing buyers of 3400 July $130 calls at $5.65 to $5.85
5/31/24 Dell (DELL) sees 1500 Jan 2026 $200 calls bought $23.20 for $3.3M
5/31/24 Dell (DELL) buyers of 2500 January $220/$240 call spreads at $1.60
5/31/24 Salesforce (CRM) buyer 1070 June 2026 $220 calls for $5.4M
5/31/24 Marvell Tech (MRVL) with 13,500 July 62.5 puts sold to open 0.75
5/31/24 Marvell Tech (MRVL) also 8500 July 5th (W) $63 puts sell to open 0.75
5/31/24 Micron (MU) buyer 1850 June 28th (W) $133 calls for $5
5/31/24 Meta (META) buyers in September $450 calls 3150X at $48
5/31/24 CrowdStrike (CRWD) large bull trade sold 500 July $330 puts to open $33.10 ahead of 6-4 earnings
5/31/24 CrowdStrike (CRWD) with 450 Oct $310 puts sold to open $34.85 to $33.45
5/31/24 Datadog (DDOG) with 4500 July $100 puts sell to open at $1.29
5/31/24 DataDog (DDOG) 2000 June $109 puts sold to open $3.02
5/31/24 Datadog (DDOG) also 1325 Aug 95 puts sold to open
5/31/24 Vertiv Holdings (VRT) buyer 2000 June $98 calls for $3.16
5/31/24 NetApp (NTAP) size afternoon buyers 5000 August $120 calls $4.60 and higher
5/31/24 Taiwan Semi (TSM) 9000 August $120 deep ITM calls buy at $33 to $34, over $30M
5/31/24 Taiwan Semi (TSM) 2500 March $130 puts sold to open for $7.95
5/31/24 Taiwan Semi (TSM) another trade sells to open 1000 August $180 calls at $1.79
5/31/24 Lam Research (LRCX) opening sellers of 650 August $900 puts at $53 to $54 as June $890 puts adjust
5/31/24 Nvidia (NVDA) seeing buyers of 900 July 5th $1100 call at $52 to $53
5/31/24 Vistra (VST) large late day buys of 10,000 January $155 calls $3.50 to $4.30
5/31/24 Constellation Energy (CEG) another 1000 January $280 calls bought $11.45 to $11.70
5/30/24 Silver ETF (SLV) large block of 16,000 March 31st 2025 $31 calls buy at $2.91 in a stock replacement, over $4.5M
5/30/24 Solar ETF (TAN) buyers of 2900 July $52 calls at $1.50 to $1.60
5/30/24 Gold Miners ETF (GDX) 5000 June 2025 $35 puts sold to open $3.50
5/30/24 Energy ETF (XLE) 1500 March $80 puts sell to open 2.34
5/30/24 Tech ETF (XLK) opening sale 1000 January $200 puts for 7.80
5/30/24 Monster Beverage (MNST) buyers 1200 July $52.50 puts $2.15 offer sweeps
5/30/24 Hims and Hers Health (HIMS) with buys in July $24 calls 5000X
5/30/24 Hims and Hers Health (HIMS) also 2000 August $19 calls bought 4.30 offer
5/30/24 Molson Coors (TAP) with buyers of 1200 Oct $55 calls at $2.45
5/30/24 Shopify (SHOP) buyer of 275 September 2025 $55 calls at $16.05
5/30/24 Shopify (SHOP) 370 Sept 2025 $55 puts sell to open $9
5/30/24 Starbucks (SBUX) 2000 January 82.50 calls bought 5.05 offers
5/30/24 CAVA Group (CAVA) 1100 Jan 2026 $125 calls sell to open at $20 as the Jan 2025 $100 short calls adjust higher
5/30/24 Trade Desk (TTD) seller to open of 1200 ITM September $100 puts for $11.30
5/30/24 Disney (DIS) 1250 March $105 puts sell to open 9.30
5/30/24 Exxon (XOM) buyer 300 Oct. $105 calls $11.90
5/30/24 Exxon (XOM) 1000 March 100 puts sell to open 3.17
5/30/24 Valero (VLO) buyer 1000 August $160 calls $6 and 1000 August $165 calls $4.15
5/30/24 Occidental (OXY) June $61 puts sell to open 5000X at 1.10
5/30/24 ConocoPhillips (COP) opening sale of 800 Dec 2026 $100 puts at $10.30
5/30/24 Coinbase (COIN) buyer of 460 October $280 calls at $35 to $37.10
5/30/24 Merus (MRUS) up to 2100 July $60 calls sold to open 3.30
5/30/24 Insmed (INSM) 1000 Dec 2025 $55 puts selling to open 9.70 follows the 1100 $50 puts sold yesterday
5/30/24 TransDigm Group (TDG) 500 June $1340 calls open for $1M as $1370 adjust
5/30/24 Advanced Micro (AMD) large buyer of 974 June 2026 $165 calls at $51.30, over $4.9M
5/30/24 Advanced Micro (AMD) with 10,000 June 14th (W) $175/$190 call spreads bought $2.24
5/30/24 Advanced Micro (AMD) also 3500 June 14th (W) $172.5 calls bought $3.65 offer
5/30/24 Teradyne (TER) with 929 August 130 puts selling to open 4.50
5/30/24 Broadcom (AVGO) opening sale 1000 July $1500 calls 30.70 to 30.50
5/30/24 Nvidia (NVDA) seeing 1100 August $1130 puts sell to open for $8M
5/30/24 Microsoft (MSFT) massive opening sale 10,000 Dec $420 puts for $24.10
5/30/24 Microsoft (MSFT) 800 November $350 calls bought ITM for $6.7M
5/30/24 Palo Alto (PANW) opening sale of 1030 July 12th $270 puts at $2.67
5/30/24 Micron (MU) 2000 December 100 puts sell to open 4.51
5/30/24 Arm Holdings (ARM) 1675 June 2026 $120 calls look to be adding $7.9M today, also 1000 Jan $150 calls bought
5/30/24 Arm Holdings (ARM) also buyer 550 Jan $145 calls $16.45 to $16.50
5/30/24 Constellation Energy (CEG) buyer of 1000 January $280 calls at $12.15