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Swing Trade Idea – May 12, 2021

Market View

CPI beat which can impact this note. Usual playbook is financials outperform tech and precious metals down.

World markets are mixed with USA red, Europe green, Hong Kong green, China green, Asia red. Yield curve flatter which is negative for financials and can support tech. US dollar higher is weighing on some of the high flying commodities. Ahead of CPI data, US markets are being led by the DJIA with the Russell2000 and Nasdaq lagging. CPI data can change the complexion, currently yields are lower with the market not anticipating a CPI beat.  Japan is weak as BOJ is reducing it’s purchases of ETFs which has supported the markets. FAANGMT stocks are weak premarket and need to be watched along with yields.  US indices are negative gamma which can lead to larger moves. Key S&P500 level is 410 which can lead to a move down to 400 on a break or sharp bounces.

Stocks to Watch

Earnings ARRY EA EYES FUBO GO LITE LMND U UPST WEN WISH

Indices XLE DBC KWEB TLT EEM IWM SLV SMH ARKK ARKW QQQ XBI EWZ ARKG FANG GDX JETS XLY SPY

S&P500 HBI EA NLOK OXY DVN MRO VIAC CVX COP FTI CCL XOM WLTW PRGO MU NCLH LIN AMAT NVDA

Movers UPST U BIGC WEN U SNDL AEG TM PLTR HBI DT XPEV OPEN COIN ARRY GO AMRN NVAX TSEM BB NOK ON

Stock Idea; BAC

BAC is a long idea for a CPI beat which will boost financials and dampen the tech bounce. Liquid stock with liquid options.

TRP target 2 42.10 and previous high 42.94