Before we start, I'm going to move our danger zone on Apple (AAPL) up to the $230 to $244 area. If the stock gets there, we may have to switch gears and close out the final 1/3 to protect the gain.

As far as the broader markets go, we are in a very tricky spot with plenty of "stop signs" telling us to play defense.

SPX/QQQ failed to sustain their record highs and turned south fast.

There is lots of damage below the surface.

The SPX is about -3% off the highs.

But the average stock in the index is down -16%.

Since the index is market-cap weighted, it's been held up artificially by a few giant names like Apple.

Countless key growth names like Palantir (PLTR) and Applovin (APP) have been taken to the woodshed.

Crypto is a big problem with Bitcoin and Ethereum taking major hits, which shows there's not much appetite for risk assets.

Thankfully, we shifted gears well last week to take down exposure.

And you can see in my disclosures below that I'm most in options positions with defined risk.

We excited Microsoft (MSFT) at $408.29 for a small loss. Now it's around $400.

Same with Google (GOOGL). Power Plays got out at $181.25 and it's down $5 since then.

Amazon (AMZN) was a clear signal that tech was in trouble so I'm glad we listened.

The problem now is that the market's already looking weak headed into two pivotal news event.

The first is Nvidia (NVDA) earnings after the close tomorrow. I'm not looking to play it with options because there's a good chance they disappoint. And of course that could throw an even bigger wet blanket on tech.

And on Friday we have the PCE Price Index. The market looked past hot CPI & PPI prints... but I'm not sure we'll go 3 for 3 in that regard.

So that's why I'll be extra careful in selecting new ideas.

Remember, there are times when I'll send 2-3 Power Plays per week, but this is not the time for that.

Think defense first, offense second.

-Scott