.

Swing Trade Idea – May 10, 2022

Market Setup pre-800ET

•Global Markets:  USA, Europe, Japan, China, Hong Kong Asia – Bullish  global set-up

•Commodities:  Gold, Silver, Oil and natgas, Grains, industrial metals (aluminum, copper, nickel palladium, zinc)

•Yields: Yields lower curve flatter

•News: USA: FOMC speakers Williams 740ET, Mester, Waller; Europe: German ZEW -34 vs -42; Italian prod 0 vs -1.4% Bitcoin: Binance limit withdrawals of both Terra and Luna

•Stocks: UPST -53% guidance -; BHC -26% guidance-; GDRX -37% guidance- ; PTON -26% miss; NVAX -22% miss; BLDR +8.5% beat, raise; XRAY miss guidance-;  IIVI beat raise; BHVN +71% PFE acquiring; MCHP beat raise; TSLA halting Shanghai production, Apr China sales -98%;

•Macro: Yields pulling back in the premarket coupled with oil lower is a catalyst for a reflexive bounce in the heavily shorted tech stocks. Yen rising indicates BOJ needs to be less aggressive with yield control

•Indices: USA indices in a bounce since Mon 20ET from oversold levels. SPY between key 400 and 405 QQQ above key 300 level. SPY 400 and QQQ 300 are very important levels. Look for gamma levels to act as support and resistance. VIX futures are back in inversion indicating a high risk.  2.0% move based on volatility.  Potential today for a violent short squeeze if the pre-market pop is not sold off

•Stocks to watch: MCHP BLDR TSLA NVDA JD BHC UPST AFRM Spec Names: ARKK

Pre-800ET

Earnings AMC CARG DDD FSK GDRX LMND LPSN MCHP NVAX OVV PLUG RNG SU UPST XPO BHC BLDR IGT IIVI LI NCLH PTON WB XRAY

Indices XBI KWEB MSOS IBB SMH LIT SOXX QQQ

S&P500 NCLH CCL GM NVDA MOS AON AAL UAL TSLA WYNN XRAY PFE MO VTRS

Movers VTNR CLOV LPSN LI AUPH HL NKLA HYLN COIN CRSP CVNA AAPL  UPST GDRX AFRM EYE OVV PLTK

WSB AMC BABA NVDA TSLA CCJ GME RIVN PLUG AFRM

Trade Idea: BLDR
BLDR substantial earnings beat and raise. 70.6 premarket high can be used for momentum trigger or look for pullback >= 68. Building stocks have been hammered with rates rising and are candidates for bounces.