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Swing Trade Ideas – January 22, 2021

Market View

In the premarket world markets are red with all countries down. US dollar is rising as a safety trade which is negative for equities and commodities. Yield curve is flatter which is negative for financials. European services PMI and Japanese MFG PMI weakness is a negative for those markets. Covid concerns are increasing again with Japan, Hong Kong, UK, Germany and USA case counts increasing and potential increases in lockdowns. S&P500 was extended and is pulling back towards the value region. Top of value is 381 and may be a bounce level and if that should fail, 379 is a stronger volume by price level.  Nasdaq is the leading USA index with MSFT the leading FAANG stock. TSLA is weak and should be on the radar screen along with FAANG stocks as they were the main support stocks Thursday. IBM and INTC earnings have not been well received. INTC is having a negative impact on the semiconductor space with AMD standing out as benefiting from INTC troubles.  Indices are still up on the week so the dip today has not yet caused a lot of damage. SPY above 379 would mean it’s just an overbought pullback 

Market View

INTC IBM earnings; AMD benefit of INTC problems; Semis TSM   China JD PDD BABA ; ARKK XLNX EDIT SPLK WORK NVTA; COVID names APT JNJ NVAX; Green names AMD SPLK KSU EXPE GME MYTE

Stock Idea; APT

APT manufactures protective masks and can benefit from Covid concerns rising. It is running hard in the premarket and can be a day trade candidate. TRP target 2 is 16.61.