Swing Trade Idea – December 27, 2021
Market Setup
- Global markets are mixed with USA mixed, Europe mixed, Japan red, Hong Kong closed, China red, Asia mixed
- Yield curve slightly flatter
- US dollar stronger, usually negative for foreign stocks and commodities
- News: China: New guidelines for companies to list overseas. Initial reaction negative; USA: 1000 flights cancelled due to staffing shortages – airlines and travel stocks weaker. Oil lower on lower demand assumption. Retail sales +8,5% Y-Y MA data. Covid: Cases ramping but less hospitalization risk. Xi’an China in lockdown for 1 week.
- Stocks: GDDY Starboard took 6.5% stake; TSLA RBC analyst estimates Q4 deliveries 7% above consensus; GFS AMD announces extension of wafer supply agreement
- Indices: USA indices have traded in a tight range with Nasdaq outperforming. Key SPX levels to watch are 470 support, 472.5, 475 resistance.
- Premarket FAANGMT are in control with TSLA, FB the two main names. Volume very light so sharp moves possible and retail names in play
- Sectors: Leading: BLOK Largecap tech, FAANGMT Semis Lagging: airlines, Silver, energy, gold miners
•Stocks to watch:
TSLA AMD GDDY FB AAL LCID MRNA Spec Names: RBLX MTTR DLO
Movers
Earnings
Indices BLOK QQQ XLV SPY XLK SOXX SMH fang JETS SLV /btc EWZ XLE GLD IWM
S&P500 TSLA AMD ADBE PFE FB PYPL ORCL LLY TGT ZTS CZR CCL UAL MRNA EXPE PSX BA FCX OXY MRO
Movers CNHI MTTR TSLA ORAN PFE FB PFE UAL DAL CLR JBLU BB BABA SOFI
WSB TSLA AMD CRSR NET NIO SOFI BABA BA SPCE
Trade Idea TSLA
TSLA is leading in the premarket and a focus of call buyers. Extended in the premarket so a pullback at the open is expected. 1100 is a high open interest strike which is likely resistance. Expected move for the week is +/-70
