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Swing Trade Ideas – January 5, 2021

Market View

In the premarket world markets are leaning to the red with USA markets red, Europe red, Japan red, China green and Asia green. US dollar is down which is positive for commodities and foreign equities. Yield curve steeper is usually positive for financials and small caps. USA markets are weakening in the premarket with FAANGMT and financials pulling back. Monday, TSLA strength supported the large cap indices and one must watch FAANGMT for direction. Today’s strength is in semiconductors which appear to now be a defensive sector and in China names.  NYSE deciding to not delist 4 Chinese telcos may be improving the sentiment towards Chinese names.  VIX is elevated in advance of the Georgia election so extra caution is warranted today.

Premarket names:

MU TSMC CDNS SNPS Semi strength;  CHL FUTU BILI TCEHY JD PDD China names;  SKLZ KTOS Ark Buys;  JEF earnings beat; 

Stock Idea; WBAWBA reports  earnings Jan 7 BMO. Strength Monday may continue today into the report.  A breakout above $41.59 may be traded to the long side.  Reports that AMZN/BRK are stopping their internal healthcare plan may also provide a boost.