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Swing Trade Idea – October 11, 2021

Market View

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

•Yield curve  steepening in premarket

•US dollar higher  which is negative  for equities and commodities

•News: China: Sentiment changing after Meituan received small fine but China bond market still in trouble as Evergrande continues to miss payments; Oil continuing to spike increasing the stagflation narrative

•Stocks: LUV 1800 flight cancellations due to labour shortage;

•Sectors: Bitcoin, energy, China and hard materials are strong and tech is weak

•Indices: USA indices are all in the red with small caps & DJIA leading and Nasdaq lagging  SPX 4400 is resistance and 4370 support. Below 4370, acceleration to 4300 can be quick given market maker positioning.  OPEX week so higher volatility is expected

•Stocks to watch: BABA PDD ZH (China) SOFI EURN (shipping) MT NUE (steel)  TTM (autos) SU CVE (energy)

Stocks to Watch

Earnings

Indices GBTC KWEB XLE DBC EEM EWZ SMH XLK faangmt QQQ ICLN yen ARKK IGV JETS FDN SPY IBB

S&P500 MRNA MRO APA HRL OXY DVN HAL NOV UNP VLO GM FAST CAG JBHT CHTR CMCSA LOW HD OTIS

Movers BABA FINV AA NIU CVNA CLF CLOV BROS LUV GOGL HAS TLRY PLTR DAL GSK SDC

WSB SOFI RIOT CLF NIO CCJ HUT NET NVDA HOOD AMD

Stock Idea; SOFI

SOFI is a finance company that provides financial services online.  SOFI is a favorite instrument for hedge funds and wall street bets. Catalyst for today is a MS upgrade to $25. Higher in premarket, look for premarket high as trigger for a momentum trade (currently 16.92) or a pullback. Look for resistance at 17.28