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Swing Trade Idea – June 3, 2021

Market View

World equity markets are negative with USA red, Europe red, Japan red, Hong Kong red, China red and Asia mixed. Yield curve is flattening in the premarket after steepening overnight. US dollar is higher weighing on commodities. ADP jobs report was +978k versus 675k which can provide support to the markets. The latest news in the gamma squeeze saga is that AMC is selling 11.6M shares, which took the price down from 77.2 to 57 and led to pullbacks in other squeeze stocks.  The broad weakness can potentially lead to an outsized down move. Key SPY levels to watch for reversal/continuation are 417.5, 416 and 415. A break below 415 can lead to a major move down.   Today the FAANGMT stocks need to be watched, especially AMZN, TSLA, AAPL which are at the 200sma. The squeeze meme may or may not be over so one should keep an open mind but if trading the meme names, understand that the risk is high.

Stocks to Watch

Earnings CIEN CLDR EXPR SJM TTC

Indices /BTC ICLN ARK SLV GDX SMH TAN QQQ EEM KWEB FANG IWM EWZ

S&P500 TTWO BIIB PVH PPL FLIR MRK FTI CCL TSLA FCX AMAT ALL EXC AAL PYPL LRCX TWTR KLAC GE NEM VIAC AMZN

Movers BB ESTC CLOV CONN CIEN BLDE TTWO AI  CWK MRK GME FUTU PLTR FCX TSLA ALL AMC APA VIAC CHGG

WSB BB SNDL TLRY NOK RIOT AMD PLUG BBBY AI AMC GME MVIS RKT GOEV NIO HOFV

Stock Idea; VIRT

VIRTU is the only public market maker. Long thesis is that a market maker makes money on both market declines and bounces. Daily breakout coming out of a short Bollinger Band squeeze.  Would watch the previous highs as resistance and monitor the indices for confirmation.