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Swing Trade Ideas – January 6, 2021

Market View

In the premarket world markets  are very divergent.  Within the USA the Nasdaq is weak and the Russell is strong and the S&P500 flattish. Europe is  green, Japan green, Hong Kong green, China green and Asia is green.  US dollar is down providing a boost to commodities and global equities. Yield curve is steeper boosting the financials and small caps.  The reflation rotation trade is on today with tech leaders being sold hard and the remainder bought.  Currently there is a 3.5% difference between the Nasdaq and the Russell2000 which is highly unusual. The S&P500 is balanced with the weakness in the FAANGM balanced by the remainder of the index.  We need to watch the FAANGM today because of they continue to be sold, they can drag down the index.  Strong sectors are the industrials, financials, energy, EV/Alt energy and Cannabis.  

Premarket names:

Cannabis TPD ACB TLRY CRON CGC VFF FFNTF ; Financials;  Industrials CAT GE HON

EV/Alt Energy TSLA NIO PLUG ARRY BLDP Guns SWBI  WBA selling unit to ABC

Stock Idea; SWBISmith and Wesson  has been moving up  as the potential for a GA Dem sweep is being priced in.   SWBI is a day/swing trade idea with potential to reach the  previous highs.