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Swing Trade Ideas – March 17, 2021

Market View

World markets are broadly negative with USA red; Europe red; Japan red; Hong Kong red; China red and Asia red. Yield curve is steeper ahead of the Fed which is pressuring the tech stocks, both the FAANGM and the ARK holdings. US dollar is higher which contributed to commodity and foreign equity weakness. USA markets are bifurcated with the DJIA index flat and Nasdaq down more than 1%.  Financials, staples and insurance are counter balancing the weakness in the technology stocks to maintain the S&P500.  Vix roll and concerns that Fed may not address the issues with the bond market are possible root causes of the weakness. FAANGMT are weak with TSLA leading  to the downside. ARK holdings are very weak and distribution of ARK funds will weight on TSLA which in turn will weight on large cap indices. One would be wise to watch the FAANGMT, and financials today. Should financials be distributed, there is a potential for a trend day down.  Should Powell address the major bond market risks, there is a potential for a strong bounce in the tech sector and in bonds. Converse is also true. Keep your head on a swivel

Stocks to Watch

Earnings COUP beat; CRWD beat; KC rev miss; LEN beat; SMAR beat; ETFs XLF ITB XME XLP KIE DIA ARKn TAN PRNT QQQ SMH TLT GDX XLY XLE IGV IWM JETS Bitcoin CLSK CAN SOS EBON NCTY MARA RIOT S&P500  MCD GS MS SCHW BAC C HSY; WSB Names GME RKT PLUG SNDL TLRY APHA GOEV ARKK BB  NEWS PLUG Financial statement issues

Stock Idea; SBUXSBUX was strong Tues and is holding Wed with a weak tape. A staples stock, will potentially outperform but will not withstand a market down draft. Stimulus cheques provide more cash for expensive lattes.  Would expect some weakness on the open and look for a dip that holds before entering. Dips should stay above 110 for the idea to be valid.