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Swing Trade Idea – May 26, 2021

Market View

World markets are mixed with USA green, Europe red, Hong Kong green, China red, and Asia red. Yield curve mildly flatter is typically positive for tech. US dollar higher is usually negative for commodities and equities. Commodities are mixed with oil and softs red but metals including precious metals higher. USA markets are being led by the Nasdaq and Russell2000 with leadership by the tech sector and smaller cap tech specifically. S&P500 and Nasdaq futures are slightly higher after a quiet session. ES resistance 4215 and support 4175 with 4160 the gamma flip line where prices can drop quickly below.  Sectors and stocks of interest: Security – ZS EPS and target raise, watch OKTA and CRWD;  Retail – URBN DKS ANF CPRI EPS; Squeeze names – GME gamma squeeze and rumor of NFT platform launch  AMC gamma squeeze.  Gamma squeeze can lead to outsized moves driven by call options. Primary S&P500 thesis is contained range 4215-4175 with dispersion under the hood. Alternate thesis of trend break in either direction is not indicated in the premarket and there is no major economic catalysts today.

Stocks to Watch

Earnings A ANF CPRI DKS GOTU JWN PDD URBN ZS

Indices /BTC JETS ARKK EWZ EEM GDX XLE IWM XLY IWM QQQ XLI FANG YEN

S&P500 A NCLH F RCL FCX JCI AAL CCL GPS UAL NWS  BLL IP KMI ITW

Movers ZS URBN DKS AMC GME ANF PDD TECK COIN COTY MGNI CPRI BB JCI CCL PLTR GOTU TVTX JWN

ARKK ZS SQ PSTG HUYA TSLA NVTA

Gamma Squeeze AMC GME

Stock Idea; ZS

ZS is a cloud based security company that beat and raised guidance. Analysts have raised price targets in the range 206-245 to provide a catalyst for higher prices. Short interest 6.5% is a slight catalyst. Currently 193 in premarket. One can trade for a momentum move or look for a pullback on the open for a long. 200 is the first resistance level and above 200, 207 and 230 are targets for swing.Other names to watch today are OKTA (earnings this week) and CRWD or the HACK etf for security stocks.