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Swing Trade Idea – May 17, 2021

Market View

World markets are mixed with USA red, Japan red , Europe red, Hong Kong red, China green and Asia green. Yield curve is slightly flatter and US dollar is lower providing support to precious metals. Macro news driving the media narrative: Indian Covid strain spreading to Taiwan, Singapore and Japan; China industrial production and retail slowing; and weaker USA retail sales implying FED will not need to taper soon. USA indices are all red in premarket with small caps  lagging large caps but equal performance across the large cap indices. FAANGMT and TSLA in particular need to be watched. Cryptos moved down with Elon tweets and are taking down the Crypto related stocks like RIOT MSTR PYPL.  Merger news du jour is T and DISCA to create a new media company which is boosting their stock prices and weighing on CMCSA, NFLX and DIS. Markets may get the usual opening bounce but there are several reasons for caution this week: USA taxes due, FOMC minutes, VIX expiration and options expiration. Keep one eye on financials and FAANGMT. Market has been rotating and can remain intact with either financials or FAANGMT weak, but not both. Keep your head on a swivel.

Stocks to Watch

Earnings MRNS PRPL  TWNK

Indices GDX SLV TAN KWEB YEN Bitcoin SMH ARKK IWM EEM QQQ EWZ DIA SPY

S&P500 DISCA T VIAC NEM CMI TSLA NFLX CCL CMCSA AMAT MU MRO WDC DIS

Movers DISCA KNBE PRPL T VIAC AMC APPH TCOM SEEL TME CCMI BIDU RIOT COIN BB MVIS TSLA PLTR CLOV

Stock Idea; SLV 

Silver is strong premarket and pulling back.  Looking for a bounce after the open for a long off VWAP with a target 25.76.

Precious metals like yields and US dollar to be falling so watch these to validate. As I am writing both are currently moving in the wrong direction so let market open and pick a direction. Can also consider HL, WPM or GDX