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Swing Trade Idea – May 11, 2021

Market View

World markets are red with US red, Europe red, Japan red, Hong Kong red, China green and Asia red. Yield curve is slightly steeper and US dollar lower. Commodities are mixed but strength continues in copper, corn and wheat supporting the inflation narrative. Media spin is that markets are down over inflation concerns making Wed USA CPI release important. USA indices are being led down by Nasdaq100 and Russell2000 with FAANGMT weak.   TSLA announced that they have halted plans to expand the Shanghai production and that its deliveries have dropped 27% M-M which is weighing on the stock. ARK ETFS are under hedgefund attacks which is hitting all the stocks being held. US indices have negative gamma which means that market makers will sell as indices fall. Key level for SPY is 410, where a quick drop to 400 is possible. QQQ has closed gaps and has moving towards volume support. There is weakness in both financials and tech which can lead to correlated selling. One can look for SPY bounces in the 410-412 region and protect below 410. Keep your head on a swivel today

Stocks to Watch

Earnings DDD ELY HBI IFF IGT MGNI MND NUAN OPEN OXY QS RMED SDV SPCE U VUZI VZIO

Indices SLV GLD  ARKW ARKK ICLN TAN JETS SMH IPO MSOS XBI QQQ IWM IGV FANG

S&P500 NLOK NKE OGR VAR TMUS CNC EMN ZBH NEM HBI TSLA PXD TWTR ETSY TER IR SPG AMD NCLH AAL MU

Movers IGT SWAV WATT BRKS NLS GHLD MIME RADA ARMK AEI JMIA NNOX FUBO HBI PLTR INO TLRY SDGR SAIL

Stock Idea; SPY

Today look for bounces between 412-410 but also be prepared for a quick drop below 410. Market makers are negative gamma so drop below 410 can be sharp as can be bounces. Keep your head on a swivel