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Swing Trade Idea – December 1, 2021

Market Setup

•Global markets are strong with most world indices rebounding post MRNA press and Powell comments

•Yield curve steeper with longer duration rates rising

•US dollar lower compared to commodity currencies and pound. Usually positive for commodities and equities

News: Covid: Israel reporting that vaccines are working with Omicron and SA is not seeing a spike in serious illness; USA: ADP and building permits premarket , ISM mfg PMI 10ET, and Powell/Yellen speaking 10ET (take care!); China mfg PMI contraction; European PMI generally strong

Stocks: CRM down on guidance; ZS beat and upgrades; BOX beat, raise and buyback; AMBA beat, raise and upgrades; LI Nov deliveries +76% m-m; VRTX positive phase 2; LEN upgrade to 140

•Indices: Indices have risen since the Tues lows led by R2K and are approaching overbought. SPY/IWM downtrend is still intact however many indicators are at levels associated with bottoms. Volatility is elevated and sticky and needs to drop below 20 to signal selling is over. SPY 260 is a good line in the sand for buy/sell. FAANGM led by AAPL/MSFT should be watched for rotation

•Sectors: Leading: China internet, small caps, energy, semis, solar  Lagging: natgas bitcoin long bonds

•Stocks to watch: 

ZS CRM LEN OXY  AU/GFI Spec Names: AMBA LI  XPEV BOX

Movers

Earnings AMBA BOX CRM HPE NTAP ZS

Indices KWEB IWM XLE SMH TAN DBC EEM XLF fang QQQ  SPY UNG /btc TLT

S&P500 FANG OXY MRO MRK VTRS LEN LVS FCX MU TER NUE CVX MSFT AAL CRM HPE MRNA PFE DHI

Movers AMBA BOX ZS LI XPEV USO NIO LEN HIVE DASH UBS ABB  NVDA MSFT CRM KRYS DNUT BNTX

WSB NIO SOFI AMC CLF NVDA AFRM AMD PLUG F BA NET TSLA

Trade Idea ZS

ZS is trading higher on an earnings beat and higher forecast. Analysts raised targets from 380-430.  400 is a level with high open interest and can be a swing target. Premarket high 372 and 376 is a previous high which can act as resistance. Pullback on open likely