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Swing Trade Idea – May 28, 2021

Market View

World markets are mixed with USA green, Japan green, Europe green, Hong Kong red, China red, and Asia green. Yield curve steeper is positive for financials and negative for tech. US dollar higher is usually negative for commodities. Bitcoin is lower, which can weigh on the bitcoin correlated stocks like TSLA, SQ, RIOT and MARA. US indices are led by Russell 2000 and DJIA in the premarket. Highly speculative, highly shorted stocks are again well bid and there are obvious gamma squeezes in some names (e.g. AMC).  Econ news premarket are personal spending, PCE with Chicago PMI and Consumer Sentiment after the open which can move bonds and hence the equity market.  QQQ and IWM are at the top of the expected moves for the week so statistically upside may be muted with the caveat that there is the potential for outsized moves.  MSCI rebalanced at the close Thursday which led to large moves at the close and there may be some stabilization moves at the open today. Tues is the first day of the month which is generally positive for equities. Have a good long weekend.

Stocks to Watch

Earnings BIG BOX CAL CRM HIBB HPQ MDT OLLI QFIN RY ULTA VEEV YY

Indices EWZ XLE IWM ICLN DIA ARKK IBB QQQ XLV FANG SPY EEM SLV GDX FXC TLT

S&P500 ULTA CRM F DXCM EBAY XEL GOOG UA GM LRCX DHI OXY AMAT MRO NUE HPQ BA LUMN JNPR MTB HFC

Movers AMC HIBB ULTA CRM VEEV EBS SNDL PLTR NOK DXCM RIDE RKT HEXO SPLK GME

WSB AMC PLUG PLTR NOK SNDL BB RKT OEV BBBY HOFV GME RIOT

Stock Idea; BB

BB is a gamma squeeze idea. Elevated in the premarket, potential momentum trade for higher prices based on WSB/ HFs pushing the stock higher. Note: Chart in CDN $

Other squeeze names to consider are AMC PLTR BYND PLUG OCGN EXPR KOSSNote not a fundamental call, pure flow. Watch the option flow for clues.