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Swing Trade Idea – July 7, 2021

Market View

World markets are mixed with USA mixed, Europe green, China green, Japan red, Hong Kong green, and Asia mixed. Yield curve flatter with long yields lower which is positive for tech, precious metals and negative for financials. US dollar is down slightly but commodities are mixed with metals up, energy up and softs down. USA markets continue to be bifurcated with tech stocks strong and financials, industrials weak. Leading sectors in premarket are energy, solar, China and tech. Security stocks are continuing to run, watch CRWD, PANW and FEYE. China stocks are bouncing from the DIDI led drop Tues. FAANGM continue to drive the Nasdaq and S&P500. AMZN, NVDA had  huge call squeezes Tues and there are signs it may continue today. Look for other names to be squeezed today by watching the option flow. News: FOMC minutes can be a market mover; and Samsung is forecasting better margins which can offset lower sales and may boost the chip sector (i.e. NVDA, AMD). SPX call wall provides resistance at 4400 and support at 4300. Volatility selling is keeping volatility low but increasing the risk of a larger move. Expectations are for markets to grind higher into at least Jul 12 with risk rising.

Stocks to Watch

Earnings

Indices /BTC TAN ICLN KWEB GDX SLV DBC GLD SMH EEM FAANGM XLE EWZ ARK XLF XLI XLP XLV

S&P500 DVN FLS FCX OXY WHR VIAC HAL APA MRO ATVI CRM LIN MAS RF SPG O PRGO GS BAC RTX

Movers BHVN SGH NOVA FLS ATI LPI RDS OAS BABA LEVI BLD UAL  DIDI SHEN ORAN MAS AQUA

WSB CLOV SPCE RIOT SOFI GOEV SNDL WKHS CLNE CLF RBLX WHKS NVDA  TRCH SHEN AMC PLTR GME OCGN BGS

Stock Idea; SHOP

SHOP is joining AMZN in a call buying squeeze. SHOP is breaking out on the daily chart with 1552.23 the previous high. Options market is pricing in 1600 this week.  TRP target 1 1801 and target 2 1670. One can use premarket high 1561 for a momo trade or look for a pullback. Watch the call flow for confirmation that the squeeze is continuing.