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Swing Trade Ideas – February 2, 2021

Market View

In the premarket world markets are strong with all major indices green.  Foreign markets are outperforming with India, Korea and Brazil leading. US indices being led by small caps  with the large caps close behind. US dollar is stronger today which is pressuring commodities but not equities. Yield curve is steeper, which is supportive for small caps and financials. Short term vix futures have dropped below 30, which is positive for equities. Vix futures term structure is still signaling risk but improving. The short squeeze meme has died down on the well known names such as GME and BB after brokers limited buying. It will be interesting what happens once buying is allowed again. Silver squeeze story was short lived, thwarted in the futures market Sunday.  FAANGMT and high growth tech are premarket leaders. Gold miners, XRT and TLT are laggards.

3800 is a major SPX resistance level and 3750/3700 support. FAANGMT are the compass for the day

Premarket names:

Earnings CTLT UPS NXPI EMR BP HOG LITE VRTX BABA Silver and Gold AG CDE HL PAAS WPM SBSW

Premarket leaders CCIV HZNP API DQ PBR SPCE DKNG MP BILI BEKE OXY JMIA ; China PDD JD VIPS BZUN; Cannabis CRBP TLRY ABEV GRWG APHA GNLN 

Stock Idea; MSOS

MSOS is an ETF holding a basket of cannabis companies. Schumer spoke Monday of legalization which can provide support for the industry. Breakout above 43.47 can be a trigger with 47 a target.