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Swing Trade Ideas – March 30, 2021

Market View

World markets are mixed with USA red, Europe green, Japan green, Hong Kong green, China green, and Asia green. Yield curve steeper is weighing on tech and helping financials. US dollar higher is weighing on commodities and precious metals.  USA indices are weak with Nasdaq leading to the downside and DJIA outperforming.  Rising yields are dominating the narrative and in today’s pre-market the FAANGMT are weak with TSLA leading to the downside and testing 600.  DJIA is the leading USA index with strength in financials due to higher yields and a shift towards value names. S&P500 continues to be tread water with growth and value moving in opposite directions. SPX first support is at 3950 and critical support 3900, where gamma becomes negative and selling can increase or a sharp bounce can occur. QQQ and IWM are  negative gamma which implies higher volatility and selling can lead to more selling.  One must watch the FAANGMT, financials and yields if trading the S&P500.  If financials and FAANGMT move in the same direction, a sharp move can follow. Keep your head on a swivel.

Stocks to Watch

ETFs XLF GDX SLV ARKK XLE ARKF QQQ ARKW XBI TLT XLY IWM SMH SPY XLP S&P500  DXC VIAC DISCX PYPL WELL RF BAC GE  TSLA OXY APA FTI SLB MRO ETSY INTC NVDA; WSB Names GME RIOT RKT PLUG GE AMC  GOEV HOFV DLPN TSLA PLTR BB NIO Bitcoin NCTY CAN SRAX EBON MARA RIOT BTBT GBTC Relative Strength X STLA MCK BAC OLN BA DHI MT LMT HON T

Stock Idea; HON

Honeywell is a diversified industrial stock which is benefiting from the rotation to value and infrastructure meme. A member of the DJIA, it also benefits from the outperformance of that index. Breaking out on daily with elevated volume. TRP targets are 227.6 and 236.6. Trailing stop 212.  Caveat that should market roll over, HON will move down.