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Swing Trade Ideas – December 8, 2020

Market View

In the premarket world markets are negative with  US markets red, Europe red, Japan red, Hong Kong red,  China red,  and Asia mixed. US dollar is positive which is negative for markets and commodities. Yield curve is slightly flatter,  which  is negative for financials and small caps. Oil is pulling back which is also negative. TSLA announced a $5B share issuance which is weighing on the stock and hence the Nasdaq. FAANGM are flat to weak and as usual key to watch. Not a major dilution and given the buying fever, likely not an issue. S&P500 dipped to the short term VPOC and bounced which indicates to me that though today’s setup is negative, the sellers lack conviction. Indices may continue to digest the recent advances today.

Premarket names:

TSLA Down on share issuance; TOL beat but weaker guidance, watch homebuilders; GRWG FUTU secondaries; Bitcoin pull back GBTC RIOT MSTR  EV&Alt Energy KNDI LI XPEV RIDE NIO HYLN SOLO TSLA SPACs are hot IBFT IPV KXIN IPOB IPOC SAMA TRNE … China JD healthcare division IPO; BIDU share buyback; SFIX, COUP earnings beats\ 

Stock Idea; SFIX

SFIX is an online apparel retailer which reported an earnings beat, reporting positive earnings compared to an expected loss. 35% short interest has led to a squeeze aided and abetted by target raises in the $54 level. Idea is trade a short squeeze higher. Look for dip on open for entry.