.

Swing Trade Idea – October 1, 2021

Market View

•Global markets are mixed with USA green, Japan red, Europe red, Hong Kong green, China closed and Asia red.

•Yield curve  flatter with the 10yr yield falling, usually positive for tech

•US dollar slightly lower which is positive for equities and commodities

•News: Eurozone: CPI higher than expectations, PMI inline, German retail sales missed; USA: PCE premarket, ISM PMI & Consumer sentiment at 10EDT;

•Stocks: MRK Phase 3 results for Covid pill 50% efficacy in 5 days (AVIR up, MRNA, PFE,GILD, REGN down) FIVN voted down merger with ZM; SPWR joining the S&P400; China EV companies XPEV LI NIO big jumps in deliveries

•Indices: USA indices went red to green at 2am with IWM and DJIA leading. S&P gamma is extremely negative will lead to high volatility. Gamma will flip positive at 4375. High short positioning and first of the month inflows can lead a positive trend day but need to watch for STR. MRK news is positive for reopening stocks like airlines and hotels. FANG stocks are positive but underperforming, watch their action for S&P support.

•Stocks to watch: MRK MRNA LUV SPWR AVIR RIOT XPEV LI DIS

Stocks to Watch

Earnings CCL JEF

Indices JETS /BTC BLOK EWZ ARKK SLV GDX XLB TLT IWM DIA XLI SPY IBB KWEB HYG EEM AGG GLD

S&P500 MRK LUV IFF RCL WYNN LVS NCLH FCX XXL FCX UAL CZR  EXPE MAR IP MRNA REGN GILD PFE AVB DLTR GL CLX

Movers AVIR SPWR MARA MRK RIOT SI FSR COIN XPEV ZM NIO LUV INMD VIR NVAX IP CVAC BNTX MRNA ALLE GILD

WSB HUT RIOT ANY NIO AMC HOFV HOOD ROOT PLTR BB BA OCGN SENS

Stock Idea; XPEV

XPEV is in play following release of Sept builds. Premarket high is 37 which can be used for a momentum trade. TRP target 1 42.2 Target 2 47.5