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Swing Trade Idea – January 20, 2022

Market Setup

Global markets are generally positive with USA green, Europe green, Japan red, Hong Kong green, China green, Asia mixed

Yields falling in premarket providing support for tech and speculative stocks

US dollar higher versus all currencies except Aussie

News: USA: Philly Fed, UE claims 830ET, existing home sales 10ET, Crude inventories 11ET; China: Lowered mortgage rates [1yr prime3.7% 5yr 4.6%]

Stocks: UNP 24% profit rise; China stocks very strong bounce on rate cut; AAL EPS beat with smaller loss; UAL lower guidance; SIG raised sales guidance and buyback

Indices: USA indices have been bouncing since 1830Wed. QQQ is leading and DJIA is lagging. Large cap tech and spec tech are leading, which may be short covering or rotation. Indices are negative gamma and volatility is high so S&P move of 1.4% is expected. Major SPX levels which act as support and resistance: 4600, 4575, 4550, 4525, 4510, 4500. A break below 4500 would be a serious bearish signal

Sectors: Leading: Brazil, China Internet, Emerging Markets, bitcoin Semiconductors Lagging: Energy Gold

Stocks to watch: BABA PDD JD AA   AMH AMD RF Spec Names: SIG TCOM SI QFIN LCID ARKK

Earnings AA DFS FNB KMI STL UAL UMPQ AAL BKR CTXS FHN FITB KEY MTB RF TRV UNP

Indices KWEB ICLN EEM LIT ARKK /btc XBI ARKF SOXX faangmt SMH TAN SKYY IPO XLE GLD Euro SLV

S&P500 TRV ETSY SEE BKR CHRW AAL SEDG TSLA MSFT ENPH TER PENN RF DFS IP F WRK AMD NXPI BLL BR UAL

Movers SIG BABA VRM TRV NUVB ETSY SOFI THC LCID AAL HOOD TSLA MSFT EVA WW RF F RDS AMD NXPI STLA CVNA

WSB BABA ANY SOFI ATS ARVL NIO GOEV PLUG RIOT HUT TSLA F AMD

Trade Idea NTES

NTES provides online gaming and communication services in China. China economy is improving and the central bank is cutting rates. Technically above volume by price levels and crossing the 50sma. 107 is the premarket low as a reference. China is risky so take care.