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Swing Trade Idea – May 18, 2021

Market View

World markets are mixed with USA green, Europe mixed, Japan green, Hong Kong green, China green and Asia green. Yield curve is slightly steeper and US dollar is significantly lower.  Commodities are generally stronger with the lower US dollar. USA markets are led by QQQ with FAANGM and semiconductors stronger. Earnings reactions to retail and China internet names has been predominately bullish which is positive for markets.  Premarket set-up looks like a combination of the reflation and tech trade with retailers, commodities and large cap tech strong. Financials are lagging so Nasdaq  outperforming the S&P500. News: ATT is tanking premarket on reports it may reduce its dividend; USA housing starts missed and TSLA continues to weaken with latest story that it caused the death of a police officer in China. As usual, FAANGMT, yields and the US dollar are the compass for the day. Currently there is some selling ahead of the open so some care is warranted.

Stocks to Watch

Earnings BIDU DQ HD IQ KC M NTES SE TME TTM VOD WMT

Indices Bitcoin ICLN EEM SLV TAN SMH XME XRT FAANGM QQQ JETS GDX XLF TLT

S&P500 WMT HD MGM LOW GPS FCX TGT NCLH AMAT AAL VIAC T CVX ED TSLA MPC AFL ADM WRK WFC

Movers CORE IQ AMC RDHL MYTE BZUN WMT CRNC BIDU DAO NTES DM DOYU ADTN SE COIN GME TSLA

Stock Idea; BIDU

BIDU is a day trade idea after its earnings report. Thesis is Hong Kong bouncing, most China names had good reports and BIDU is a WSB fave, One could for premarket high 169.91 to be taken out for a long. China stocks tend to pullback on open so look for a dip and bounce off VWAP.