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Swing Trade Idea – July 13, 2021

Market View

USA markets dipped into the red with the release of the CPI which came in much hotter than expected. USA  indices are down slightly led by the Nasdaq stocks and the Russell 2000 lagging. US dollar is higher which is negative for equities and foreign stocks. Yield curve is slightly steeper which is usually positive for financials; however earnings reports may dominate the financials.  GS and JPM beet earnings with GS having a large beat and trading up but JPM down. BA is cutting 787 production and trading down. FAST and CAG are trading down on earnings.  Suggest letting the market digest the CPI print. 435 is a key level for SPY that needs to hold. Banks are worth watching today to see if the higher print brings money into the sector. They were weak prior to the CPI print.   Chinese internets are the strongest sector and the Cannabis sector is showing some strength so worth a look.

Stock Idea; NOK

NOK is in play on news that they will be increasing their guidance. Earnings will be reported Jul29. NOK is a WallstBets name so may get a lift. Premarket high is 5.88, stock is pulling back in the premarket. One can look for a bounce with premarket high as a target and TRP target 2 6.08.  High levels are possible if a call squeeze follows.  ERIC is another name in the space which is setup for a buy.