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Swing Trade Idea – August 31, 2022

Market Setup- Pre ADP

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

•Commodities:  Gold, Silver, Oil and natgas, Grains, Industrial Metals

•Yields: Yields higher

•US$ +.21% EUR -.26% Swissie -.65%

•News: USA: ADP 830ET, Chicago PMI 9:45, 3 FED heads Europe: Natgas pause to Germany China: MFG PMI still < 50

•Stocks: CRWD CHPT DBI positive earnings; HPQ PVH CHWY BMO AMBA negative earnings; BBBY -24% cutting 20% of staff, secured $500M new financing, planning share offering;  SNAP 20% staff cut

•General: Leading: China Internet, bitcoin, spec tech Lagging: Energy, gold

•Indices: Pre-ADP  US indices bouncing into resistance premarket. Commodities lower is giving a bid to growth names.  SPY resistance 400, resistance 405, 406, 410.  QQQ  301, 300 support 305 310 resistance. VIX 26 implies 1.5% daily move. Indices are negative gamma which can lead to much larger moves. Macro setup is not positive with US$ and yields higher but lower oil prices positive

•Stocks to watch: PYPL PDD EDU TSLA   CHWY  Spec Names: BBBY CHPT NOK ERIC

Pre-800ET

Earnings CHPT CHWY CRWD HPE HPQ PVH DBI BMO

Indices KWEB /btc ARKF EEM QQQ ARKK SMH XLK SOXX JETS faangmt XOP XLE DBC GLD GDX TLT

S&P500 PYPL NETA NFLX AMAT HPQ PVH APA MRO DVN HAL OXY SLB CVX

IWM MTRX DBI MSTR BCRX SM MTDR VERU OVV FRO PBF GME

WSB BABA MSTR COIN NET GME CCJ

Trade Idea: PYPL
PYPL is in play on an upgrade to $114 by BofA. Option flow has been slightly bullish with an expected move this week of +/-3.4 and open interest building at 95, 97.5 and 100 into Sept expiration. Premarket high 94.76, would look for 95 to hold for long or pullback > 93 with QQQ moving higher