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Swing Trade Idea – January 3, 2023

Color Key: Positive – Neutral – Negative

Market Setup – Pre830ET

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

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

•Yields: Yields are lower

•Currencies:  US$ +1.2%, Euro -1.5%, Yen +0.01%, GBP -.89%

News:  China: Caixin mfg 49 vs 49.2 Europe: MFG PMIs < 50 but improving m/m

•Stocks: TSLA -3.8% Q4 deliveries below expectations AAPL +.3% Downgrade target 140; SQ +3% Upgrade target 78 NIO +3%  deliveries 60% y-y XPEV +5.8% Dec deliveries +94% m/m WYNN +3% upgrade target 101 ENVX +3% CEO livestream 17:00 EST  Reddit Names: NVDA, AMD, JPM, META

•General: Leading: China Internet, TLT, Gold Miners, Semis Lagging:  Brazil, euro

•Indices: Global indices are positive but have been pulling back since the European opening. Macro mixed with yields lower, US$ higher, and energy lower. The SPY 384 has a resistance of 385, and 390 with support of 383.4, 381, 380, and 375. Vix futures 23 implies 1.4% daily move. QQQ 267 displays a support of 266, and 265 with a resistance of 270. The Market is positioned risk-on with caveat that strength in US$ is usually negative but lower yields can benefit tech. USA indices declining since 3am ET which is another caveat as selling can continue at the open. TSLA and AAPL weakness is a concern but premarket semiconductors are counterbalancing.

Stocks to watch PDD, WYNN, NVDA, META, BA, NEM, AAPL, TSLA,   Spec Names PLL, PLUG, ENVX

Pre-800ET

Earnings

Indices KWEB, TLT, GDX, SOXX /btc, EEM, IWM, ARKK, QQQ, XLK, GLD, EFA, EWZ /6e

IBD50 PDD, TTE, CPRX, CROX, FLEX, CELH, UNVR

S&P500 WYNN, PYPL, NCLH, HPE, LVS, PARA, AMD, NVDA, NEM, BA, BDX, TSLA, LIN, EQT, FOXA, CI, CTRA, VTR

IWM LTHM, SPWR, TGTX, PLUG, CROX, DEA, AI, AR, CRK, CNX, BTU, CI

WSB BABA, PLUG, NVDA, COIN, AMD, NET, BA, TSLA

Movers LI, BILI, NTES, WYNN, SQ, JKS, CRH, PHG, ING, PDD, ENVX, PYPL, LAC, LULU, LTHM, TGTX, ROKU, AU, WOLF, NVDA, NEM, NFE PBR, TSLA, UNVR, LIN, EQT, AR, CRK, QGEN

My Trade Idea: SQ
In my opinion, the SQ is in play with the market risk-on and an upgrade with a 78 target. In my analysis, premarket high of 65.3 can be used for a momentum long or alternative pullback > 63.50. Expected move for week is +/-4 so stock is extended.  Above 65 look for 67.5 and 70 targets. In my analysis, PYPL an alternative in payment space.