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Swing Trade Idea – May 19, 2022

Market Setup pre-800ET

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

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

•Yields: Yields lower and flatter

•News: USA: Philly Fed, UE claims; Europe: ECB Monetary Policy Meeting; Asia: Sri Lanka defaulted on foreign debt; HF: Melville capital closing – funds closing leads to longs being sold and shorts being bought – there is not just one cockroach

•Stocks: CSCO -15%  weak guidance impact JNPR ANET AVGO;  KSS -8%  Big miss; GOOS +10% small beat; CPRT +9%; BJ +5.4% beat; BBWI -7.8% guidance-;  LSPD +5% beat but –EPS; UAA CEO stepped down

•Indices: Global equity weakness with USA indices small bounce that is failing in premarket. SPY below key 390 gamma level which can act as a pivot with 385 key support. QQQ below 290 gamma level which can act as a pivot with 285, 280  support. VIX futures no longer inverted is supportive for markets. SPY 2.0% move based on volatility.  Wed was a correlated selling day leading to a trend down and Thurs looks similar in premarket. Potential for both continuation lower or a strong bounce so keep head on a swivel. Watch earnings names for follow-through

•Stocks to watch: SNPS BJ CPRT KSS CSCO JNPR ANET AVGO BBWI Spec Names: GOOS

Pre-800ET

Earnings BBWI CPRT CSCO GDS SNPS BJ GOGL GOOS KSS

Indices SLV GDX TLT FXC XOP ARKK XLK XLF XBI SOXX ARKF XBI XRT QQQ

S&P500 SNPS CSCO JNPR ANET BBWI UAA AVGO MRO DVN NTAP TSLA PEAK CSX NCLH HAL NVDA OXY

IWM BJ EBS VERU ABR BTU INSW WGO ANF MAC DOC PLUG SAVE CRK M AR RRC OVV APPS BE RUN

WSB BABA TSLA AFRM NVDA COIN PLUG AMD NET RBLX

Trade Idea: CSCO
CSCO poor guidance blaming supply chains and China lockdown. Premarket low 39 and premarket high 43.4.  Day trade candidate for either a bounce over premarket high or short to premarket low and then lower.  JNPR, ANET, and AVGO are trading with CSCO and are similar day trade candidates. Monthly chart below