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Swing Trade Idea – July 26, 2021

Market View

World markets are weak with USA mixed, Europe red, Japan red, Hong Kong red, China red, Asia red. Yield curve flatter with long rates lower which is negative for financials and positive for tech. US dollar is lower which with lower rates can in theory boost precious metals. US large cap indices are slightly negative and IWM has turned positive.  News:  China privatization of online education companies was made official leading to all China stocks down sharply; Covid Delta variant outbreaks are continuing though cases in UK are peaking; bitcoin moved up sharply Sunday on rumor that AMZN is getting involved or short covering, take your pick. FANG stocks have been supporting the market and in the premarket are collectively flat with AMZN and TSLA leading.  AMZN and TSLA may be the FANG du jour with the bitcoin story and a 4850 target assigned to AMZN. Bitcoin stocks are also in play with PYPL and SQ the large cap names and the usual suspects of RIOT, MARA, BTBT, SOS names that would attract flow.  SPY closed Friday’s gap overnight and one can use the overnight low of 437.1 as a line in the sand. With major earnings on tap, major movement to the downside would be a surprise.

Stocks to Watch

Earnings CHPT DORM LMT PETS HAS

Indices /BTC SLV TLT GDX GLD FANG KWEB EEM JETS XLE EWZ ARKQ ICLN XLF XLB DIA XLI XHB

S&P500 LUMN HAS GPS FTI TSLA PYPL F HPE FCX AMZN WYNN FLIR LVS LOW CCL NVDA BA NCLH BK DAL LUV OXY BAC

Movers FLOW LUMN RYAAY S QURE HAS RIO SIX PCRX ABB DHI TAL ATIP GOTU DAO AZN LOW PANW ABG

WSB RIOT AMC OCGN TSLA WKHS HOFV NOK  NIO GSAT SOFI SENS CLNE TLRY MVIS WISH SPCE NVDA BA RBLX

Stock Idea; PYPL

PYPL is a breakout candidate that will benefit from the rise in bitcoin. Earnings Jul28 and PYPL may run into the earnings print. Premarket high 312 can be used for a momentum trade or look for a pullback for a long entry. SQ is an alternate name.