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  • Swing Trade Idea – June 7, 2021

    Jun 07, 2021 Uncategorized Comments Off on Swing Trade Idea – June 7, 2021

    Market View

    World markets are mixed with USA mixed, Europe green, Japan green, Hong Kong red, China red and Asia green. Yield curve is steeper which is providing a lift to financials and a drag to tech. US dollar is flat, rising from negative in the premarket. Commodities are mixed, with strength in softs but weakness in oil and metals. USA markets are being led by DJIA and small caps with higher exposure to financials. FAANGMT are lagging in the premarket with weakness in TSLA continuing in the premarket. The gamma squeeze is continuing in WSB names with the potential for large intraday moves (e.g. MVIS CLNE WKHS TLRY AMC BB). S&P500 finished extended on Friday with 4200 the key gamma level that is likely support, 4250 the call wall which is likely resistance and 4160 a level where sharp breakdowns can occur.

    BIIB is in play with an FDA statement due today which can lead to a large move up.  Biotech sector is currently showing some strength and may move with the BIIB results. Travel and leisure, financials and biotech are sectors that are leading to the upside in the premarket.

    Stocks to Watch

    Earnings GIII JFIN HYW

    Indices JETS XBI XLF IBB YEN DBC DIA XLV XLI /BTC SLV TLT KWEB GDX GBTC EEM EWZ ICLN

    S&P500 BIIB AAP CHRW V TYL GM NCLH MAR AAL DAL LMT APA C BAC PGR WYNN PEG LIN MGM NEM FCX TSLA MSFT

    Movers MIC MVIS CLNE GIII TELL WKHS CLOV SNDL TLRY UPST FATE AMC CHRW ARGX WERN ONEM RIDE TSLA FISV

    WSB MVIS CLNE WKHS CLOV SNDL TLRY AMC BB RBLX HOFV EM SPCE AI TSLA NIO

    Stock Idea; BIIB

    FDA is supposed to be ruling on BIIB’s Alzhiemer therapy today. Jefferies analyst suggests BIIB could reach 400 if approved or 175-200 if rejected. Options market is pricing in +/-71 move this week. Analysts are projecting 30-50% probability of approval. A trading technique to trade would be to straddle the stock with stop limit buys/shorts to trade a large move. Currently 292 would be an upper breach though premarket has reached 299 before regressing. Would need to adjust level based on the market. Lower level could be 284 below Friday flag or 262 to be below the recent range.

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