Swing Trade Idea – July 18, 2022
Market Setup
•Global Markets: USA, Europe, Japan, China, Hong Kong Asia – Positive global set-up
•Commodities: Gold, Silver, Oil and natgas, Grains, Industrial Metals (Aluminum Copper Nickel Palladium Platinum Zinc)
•Yields: Yields higher and steeper
•US$ -.57% Euro .6% GBP .9%
•News: USA: Waller and Bullard talked Fed increase down to 75bps Europe: ECB expected to increase rates 25bps Thurs; Nordstream pipeline flow hope to restart Thurs; Draghi tendered resignation but rejected China: Regulators encouraging lenders to lend to real estate projects
•Stocks: GS beat with revenue 25% lower and profit 50% lower than 1 year ago BAC miss rev and earnings; COIN MSTR RIOT higher after bitcoin rose on weekend; NVDA Pelosi bought $1-5M; Senate voting on subsidy to chip companies; DNB bought NVDA, COIN, GE sold AAPL; BA Delta buying 100 737 Max; SYF beat down 33% Y-Y GOOGL trading post-split
•General: Leading: /btc China ARKK XOP Semiconductors Lagging: TLT
•Indices: USA indices rose strongly overnight and pulling back. SPY below 390 gamma level which is resistance and above 385 gamma level which serve as support with 380 below. QQQ below 295 gamma level which serves as resistance and above 290 gamma level which serves as support. Premarket setup for risk-on / short squeeze which may continue after a pullback. Many stocks are extended so care should be taken.
•Stocks to watch: GOOGL NVDA COIN BA FCX JD GE Spec Names Can Short Squeeze: IQ CROX DNA CVNA ARKK
Pre-800ET
Earnings BAC GS PLD SCHW SYF
Indices /btc KWEB ARKK XOP ARKF XLE SOXX JETS EEM TLT
S&P500 BA FCX SYF NVDA OXY UAL AMD ENPH ETSY TSLA MU IP PARA
IWM MSTR PLUG SI SIGA BTU AA CROX OVV CLF X CHK SM RUN BL
WSB COIN MSTR PLUG BA NVDA BABA AFRM CLF AMD TSLA NET
Trade Idea: NVDA
Semis are potentially bid on news that the USA govt will pass a subsidy bill. NVDA has other news catalysts. Premarket high 163.6 can be used for a momentum trade or look for pullback >160. Can also look at SOXX, MU, QCOM, AMD and ASML
