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Swing Trade Idea – December 14, 2021

Market Setup

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

•Yield curve steeper with long yields higher, positive for financials

•US dollar weaker relative to Euro and Pound

•News: USA: PPI 0.8% vs 0.5%; Europe: Industrial production m-m 1.1% missed; Omicron: China reported new case; IEA cut oil forecast for Q1

•Stocks: VIR Phase 2 treatment; NEOG combining MMM food safety biz;

•Indices:  Global equity markets are weak premarket. USA indices are red with DJIA leading and Nasdaq lagging. Growth stocks, especially high or negative PE are in distribution. Premarket financials and staples are outperforming. Weakness in large cap tech, specifically NVDA and TSLA are a risk to markets today as there is little support below. Should correlated selling develop, last Friday’s lows are in play.

•Sectors: Leading: Brazil, bitcoin, Euro Lagging: Natgas, China Internet, Silver, ARKK, solar, semiconductors

•Stocks to watch: 

FLR AA MT NVDA TSLA  Spec Names: MOLN  AMC

Movers

Earnings HEXO

Indices EWZ MSOS euro XLF XLB XLP JETS DIA UNG KWEB SLV ARKF IGV ICLN ARKK FDN QQQ TAN

S&P500 ROL CNC AAPL IBM LIN MMM GD FCX BAC WFC AME C RL EOG AKAM ADBE PTC MRNA TSLA CDNS

Movers TMX MOLN ATRA NEOG LICY BYND AA LAZR FFLR MODN ASO CNC TM AMC SSL HEXO DOCS NET RL ZS DDOG

WSB ASO RIOT AMC NET GME NIO AFRM BABA RBLX DWAC TSLA F PLTR

Trade Idea NVDA

NVDA is a short idea, possibly extended but little support below. Noteworthy as a major holding of QQQ and SMH.  Ideally look for bounces for short entry. Reward to risk high should it breakdown