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Swing Trade Idea – June 4, 2021

Market View

World equity markets are mixed with USA mixed, Europe red, Japan red, Hong Kong red, China green,  and Asia red.  Yield curve is slightly steeper which is positive for financials. US dollar is flat. Bitcoin is lower, allegedly due to an Elon quote.  USA indices received a small bump post the NFP report which had a decrease in jobs but an increase in earnings and a decrease in unemployment.  USA indices are being led by the small caps and Nasdaq.  Leading sector ETFs are the ARKK, JETS, GDX, XLY and XLE. FAANGMT are all positive and TSLA is bouncing and providing the lift to ARK and XLY. TSLA is in clear distribution so one should watch for a squeeze, which can be followed by more selling.  Gamma squeeze continued Thurs and will be watching for it to continue today (see WSB names below). AMC issued more shares again last night and shares are trading lower but since it’s not trading on fundamentals, the squeeze may continue (or bust).  Earnings reports were generally positive and many fall into the ARK type stocks which can support moves in spec tech. DOCU is the only one to exceed the expected move and hence prime candidate for a runner.  F and GM received upgrades from JPM and have attracted a lot of calls and are candidates for further moves. S&P500 remains pinned by gamma to 4200 with a call wall at 4250 which will act as resistance and 4175 as a key division between bull and bear. Likely a range day in the S&P.

Stocks to Watch

Earnings AVGO CRWD DOCU WORK MDB FIVE CHPT ASAN PD SUMO ZUMZ IDT LULU

Indices ARK JETS XLY XLE TLT FANG SLV GDX EWZ DIA EEM XLP GLD

S&P500 F TSLA DLTR NOC FTI OXY WFC UAL GM LUV DVN AAL DAL NVDA MOS LYB IPG FB NEM IVZ DIS FAST PNR

Movers TSLA MRNA STLA F RBLX DOCU XPEV DLTR PLUG TTM TLRY X NKLA CCIV CLOV TIGR FCEL JMIA CRON MVIS BNGO

WSB SENS CLNE F MVIS PLUG HOFV CLOV TSLA RBLX NVDA TLRY AMC WKHS RIOT BB GME SNDL AI BBBY

Stock Idea; DOCU

DOCU is a day trade idea with catalyst earnings beats, analyst target raises and premarket strength. DOCU has moved above the expected move which can (no guarantee) lead to a runner.

One can look for  a momentum trade above the 208.4  premarket high of a dip to vwap intraday.