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Swing Trade Ideas – February 23, 2021

Market View

World markets are negative with USA red, Europe red, Japan red, Hong Kong green, China green and Asia red.  US dollar is up slightly which is a negative for commodities, which are mixed premarket. Yield curve continues to steepen which supports the financials. The DJIA is slightly green while the Nasdaq and Russell are weak.  For the last few days there has been a rotation from large cap tech into financials, industrials and energy and this trend is continuing in the premarket.  As long as this continues the S&P500 will be supported;  however, should the distribution broaden, larger down moves are possible. The bubble in SPACs and highly speculative momo names may have popped with the closing of the CCIV deal with Lucent at a lower than forecast valuation.  Today there is pronounced weakness in the ARK ETF holdings which have been leaders which is indicative of speculative money pulling back. SPX gamma is zero which can lead to higher volatility and 3850 is an important level where dealer shorting will continue. Nasdaq is in negative gamma zone which can lead to increased selling. Weakness in FAANGMT and TSLA in particular are risks. Watch FAANGMT and financials as if both tech and financials break down larger moves are possible. 

Stocks to Watch

DJIA Names CVX CAT BA JPM TRV CRM MSFT AAPL HD   Relative Strength Leaders TCOM MRO WYNN MGM COP MAR CPE LUV SPG SAVE MET LB CAT   SPAC plunge CCIV

Stock Idea; LVS

Las Vegas Sands is a Macau centered gaming company.  It is still early days for Macau recovery and there is high probability for a pullback,  but one can trade for the short term. Longer term there is value once vaccines are distributed and business returns. Other names are WYNN and MLCO