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Swing Trade Ideas – February 1, 2021

Market View

In the premarket world markets are strong with all major indices green.  Strongest moves have been overnight in Korea, India and Hong Kong.  Econ reports: China CAIXIN PMI lower and Europe mixed with Germany, Spain weaker  but France and Italy stronger.  USA dollar is stronger which is normally a negative for equities and commodities but not evident in the premarket. Yield curve is flatter, which is usually a negative for financials.  VIX futures are still inverted and remain elevated indicating higher risk.  High short interest stocks are strong in the premarket so the short squeeze is continuing in some names which can pressure the market. Silver is the hot commodity as speculation that WallStBets were going to target Silver has led to buying in the futures overnight.  FAANGMT stocks are strong premarket led by AAPL and TSLA and as usual they are key to watch.  AMZN and GOOGL earnings this week and potential for a run into earnings.  

Premarket names:

Silver and Gold AG CDE HL PAAS WPM SBSW ; China PDD NIO TCEHY JD BABA TME; Semis strong TSM STM AMD MU LRCX XLNX; Bitcoin GROW XNET SRAX BTBT GBTC MGTI;  Highshorted Names AMC SRNE SPCE FUBO INO AXDX SENS CVM CLVS OPK WKHS BLNK TR BB LAZR DDD RKT GSX GME; ETFS XME KWEB EEM ARKQ ARKK ARKW XBI TAN XLE ARKG XRT

Stock Idea; FLGT

Fulgent Genetics, Inc., together with its subsidiaries, provides genetic testing services to physicians with clinically actionable diagnostic information.  FLGT short interest 29% with small float can lead to explosive prices. Look for pullback for an entry. Expected move +/27 into Friday close. Very speculative day trade idea.