Smart Money Radar Watchlist: December 17

Good morning, traders…

The economic data we’ve been waiting for just dropped.

And it’s not great.

105,000 jobs were lost in October, while November added back only 64,000 jobs.

That’s a net loss of 41,000 jobs over two months.

Meanwhile, the unemployment rate climbed to 4.6% (the highest level in 4 years).

And retail sales came in flat (the weakest reading in 5 months).

Consumer spending may be stalling right as we head into the critical holiday shopping period.

This negative “data deluge” is even more concerning when you consider the context…

The government shutdown delayed nearly every economic report from the Bureau of Labor Statistics and the Census Bureau for 39 days.

October’s jobs report was the first monthly snapshot in almost 80 years that didn’t include an unemployment rate.

The last time this happened, World War II was still being fought.

Now add another spice to the mix … Quad Witching Friday.

Stock options, index options, stock futures, and index futures all expire at once.

WARNING: 7 out of the last 10 Quad Witching days, the SPY closed red.

The combination of market-moving economic data plus Quad Witching lays out a potential minefield of volatility.

When the market gets this chaotic, selectivity is your biggest edge.

The key is trading with the Smart Money while everyone else “trusts their gut.”

Good thing my Dynamic Watchlist is lighting up with enormous bets…

These Are My Top 4 Smart Money Setups.

NFLX January 16 $110.00 Calls

NFLX chart: Year-to-date, daily candles — courtesy of TC2000

Netflix, Inc. (NASDAQ: NFLX) sold off hard after announcing plans to buy Warner Bros. Discovery.

The initial reaction wasn’t too surprising. When acquisitions happen, the acquirer’s stock typically dips (while the acquiree’s stock soars to the purchase price).

But with NFLX 30% off its highs, the dip has “dipped too far,”

The chart has come all the way back to April levels.

It’s overdue for a relief rally.

These calls have been getting hammered by Smart Money. And with 30 days to expiration, they have plenty of time to pay out.

TLRY February 20 $15.00 Calls

TLRY chart: Year-to-date, daily candles — courtesy of TC2000

Weed stocks are back on the menu as reports swirl that Trump plans to reschedule cannabis from Schedule I to Schedule III.

This proposed executive order would allow U.S.-based cannabis companies to deduct business expenses for the first time.

Moving non-deductible expenses into a tax-deductible column would create immediate, overnight profitability for many currently “unprofitable” cannabis companies.

Tilray Brands, Inc. (NASDAQ: TLRY) is the options market’s favorite play in the sector, getting absolutely slammed with millions of dollars in call buying.

The stock is squeezing, up 30%+ yesterday.

Most retail traders attempt to catch these moves with short-dated weeklies. But I prefer these February calls (as do the Smart Money whales).

They cost more, but they stand to benefit from an extended momentum run if the rescheduling actually happens.

CLF March 20 $15.00 Calls

CLF chart: Year-to-date, daily candles — courtesy of TC2000

Goldman Sachs recently raised its price target for Cleveland-Cliffs Inc. (NYSE: CLF) to $16 while maintaining a “Buy” rating.

That upgrade lines up perfectly with this strike price.

Coincidence? Probably not.

But why is this chart building momentum?

Cleveland-Cliffs just completed a production trial with a major automotive manufacturer, which proved that its steel could directly replace aluminum in car manufacturing without costly changes.

That’s huge news, especially given the current disruptions in aluminum supply.

And the Smart Money knows it.