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Swing Trade Ideas – December 31, 2020

Market View

In the premarket world markets are mixed with USA neutral-down; Japan green; Europe red; China green; and Asia mixed.  China overnight PMIs were bullish but lower than expectations. USA UE claims will be released 8:30 and potentially market moving. Today is the last day for USA 2020 tax loss selling and past the deadline for Canada.  Potential for late day buying in stocks that are significant 2020 losers. US dollar is slightly lower, providing some equity support but note the reversal week. Yield curve is flat and not a factor. US large cap indices are quiet with AAPL and TSLA the two principal sources of strength.  Premarket the strength is AAPL, TSLA, EV names, bitcoin and weakness in financials, energy and small caps. Indices have been consolidating for weeks so one should be prepared for a larger move today with volume low

Premarket names:

AAPL TSLA Nasi strength; SPACs NNDM RMG IPOC;   EV Alt Energy LI LIT XPEV PLUG TSLA FSR NIO BLDP; Bitcoin CAN GROW BTBT DPW MARA; China BIDU CMCM PDD NIO TCEHY; 

Stock Idea; TSLA

TSLA appears to be in a short squeeze and at the top of a rising channel. Premarket is up 1% and setting up for a potential runaway move to the upside or a significant move to the downside. Could approach with a straddle mentality with opportunities in either direction. Long above 706 and short below 690. A sharp move down by TSLA will be felt in the S&P500 and Nasdaq100