Swing Trade Idea – May 13, 2022
• 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 higher curve steeper
•News: USA: Consumer sentiment 10ET Bitcoin: Collapse of stable coin averted – Tether back to 1:1 peg, TerraUSD shut down. Bitcoin big bounce. Not clear to me how stable it is. FED: Powell – 50bps June July but landing may not be soft China: Aim to ease lockdown May20; Credit growth slowed sharply Europe: G7 continue to talk Russia sanctions – positive for US$, oil
•Stocks: TWTR -10% Dropped overnight after Elon tweet that acquisition on hold and then bounce on tweet that still committed. TSLA +6% bounce on tweet; AFRM +36% guidance +ve; HOOD 7.6% stake from FTX ; Bitcoin related names all large bounces COIN, BLOK, SQ
•Market: Short cover rally with catalysts: oversold, hope that China lockdown will end; bitcoin plunge halted, Elon tweet, Friday Opex. Huge moves in premarket already, so some care warranted
•Indices: USA indices sharp rise overnight. SPY now between 395 and 400 gamma levels with 400 a major level. QQQ between 295 and 300 levels. Look for gamma levels to act as support and resistance. VIX are still very inverted but starting to improve. 2.0% move based on volatility. Small caps, biotechs, airlines, casinos and other beaten down and heavily shorted names.
•Stocks to watch TSLA AAPL SQ COIN TWTR Spec Names: AFRM DUOL U PLUG
Pre-800ET
Earnings AFRM DUOL MSI TOST VZIO
Indices /btc ARKK ARKF KWEB XBI JETS BLOK EWZ TAN QQQ TLT GLD
S&P500 TSLA MOS NVDA CCL ENPH PYPL LVS MU SEDG NFLX AAL CF AMD DAL OXY TWTR SO UPS
Movers AFRM HOOD DUOL EDR COIN AOSL RIVN TSLA GME FSLR AMC CHPT UPST STM CYBR TWTR UPS
WSB TSLA JD DDOG ASML NVDA MSFT AAPL
Trade Idea: TSLA
TSLA bouncing on Elon tweets and market short cover. Premarket high can be used for a momentum trade or look for a pullback on open to > 750 for a dip buy with initial target 800
