Swing Trade Ideas – April 13, 2021
Market View
World markets are slightly weak in the USA premarket. USA red, Europe red, Japan green, Hong Kong green, China red, and Asia green. USA monthly CPI will be released at 8:30 with expectation of 0.5%. Yield curve is slightly steeper and can steepen if CPI exceeds or flatten if it meets. Tech likes a flatter yield curve and financials likes a steeper. US dollar is slightly higher, which is usually negative for equities and commodities. The USA market is being led by the Nasdaq with the Russell2000 lagging. The reflation/reopening stocks are lagging, fueled by a news report that European regulators are investigating claims of rare blood clots (6 and one fatality). FDA and CDC are calling for a pause in JNJ vaccination (6M administered). JNJ stocks is down premarket with PFE, MRNA, NVAX and BNTX higher. Lockdown stocks like ZM, PTON are higher. JNJ represents a small percentage of USA doses so IMO this is likely an over reaction in the medium term. Bank earnings begin today after the close with GS, JPM and WFC reporting. These stocks are currently down premarket and may be candidates for a bounce prior to the close with caveat that CPI print can affect the yield curve, which will impact the banks. Monday, the USA breadth was weak with FAANGMT leading. In premarket TSLA and AMZN are leading and there is the potential that they can continue to buy them today. China stocks continue to weaken on concerns of govt tightening and further regulation, be careful if holding BABA.
Stocks to Watch
Earnings APHA Indices SLV KWEB JETS EWZ ICLN XLF IWM XRT XLI DIA EEM SPY TAN S&P500 MOS DHR MOS FDX AEE BMY TSLA DISCA NCLH FAST AAL CCL JNJ UAL DAL LVS MGM MAR BA Premarket leaders SI BNTX DHR PFE FDX TSLA BMY VRM BBBY AMD OGI APHA FAST JNJ RDY INFY Bitcoin CAN BTBT NCTY GBTC XNET MSTR
Stock Idea; SI
Silvergate Capital operates a bank holding company that manages an exchange for the transfer of digital currencies. SI benefits from the growth in the use of digital currencies and may receive a boost with the Coinbase IPO Wed. SI is basing and at the upper end of a range with 177 a breakout level. Caveat is that it is extended from the breakout level and will be volatile given the volatility of bitcoin. Earnings Apr20 AMC.
