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Swing Trade Idea – December 20, 2021

Market Setup

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

•Yields slightly lower across the curve

•US dollar slightly lower relative to Euro but higher relative to commodity currencies

•Commodities broadly lower led by oil with natgas an exception

•News: USA: Build Back Better Plan will likely not pass the Senate – GS has cut USA GDP growth as a result. Clean energy stocks will be weak as a result.  Covid: Netherlands entered lockdown and concern for more lockdowns is weighing on stocks in spite of data from SA that Omicron is less dangerous than Covid Delta

•Stocks: Vaccine related names strong: NVAX MRNA PFE VIR Solar and EV weak: RUN PLUG SEDG LAC FSLR Friday there was a short covering rally in the ARKK style stocks as the large cap indices fell. Worth watching the action today in these names

•Indices: USA indices have declined since the Sunday open and potentially bottoming in the premarket. The Monday after Opex is usually volatile and today is no exception. SPY 450 support  455/460 resistance levels to watch 

Sectors: Leading: TLT Lagging: steel, solar, China Internet, Energy, tech

•Stocks to watch: 

PFE MRNA NVAX ZM QDEL TSLA NVDA Spec Names: VIR ITCI  ARKK

Movers

Earnings CCL

Indices Euro TLT GLD SLX TAN KWEB ICLN XLE JETS XLF ARKK GDX XLK EEM IWM EWZ ARKF XLY XLB

S&P500 MRNA BIIB BLL CERN PFE T FRT OXY NCLH ENPH ALB MRO NUE DAL CCL AAL HAL APA UAL RCL DVN

Movers ITCI ARGX MRNA CHRS BGNE UNG BLL T RLGY AZN DQ WISH AMC FUTU GME NVDA AMD SQ AAPL TSLA

WSB PLUG RIOT HOOD AFRM BABA AMC RBLX NVDA DWAC SPCE GME

Trade Idea ZM

ZOOM is a beaten down stock that had a bounce Friday likely on short covering and is moving today on the Omicron meme.  ZM could be a day trade idea, look for a pullback on the open to manage a stop. Thesis is additional short covering or continuation of the lockdown meme today. Risky name so handle with care.