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Swing Trade Idea – July 8, 2021

Market View

World markets are red with USA red, Europe red, China red, Japan red, Hong Kong red, and Asia red. Yield curve flatter with long yields lower. US dollar is down with Yen and Swiss Franc higher, which is a clear risk-off signal. Commodities are generally lower with oil and copper lower. News: jobless claims higher than consensus; China stocks continue lower on CCP concerns; rails lower on reports that WH is looking into rail consolidation; travel is being hit on Covid concerns. USA indices are uniformly weak with most stocks lower. Recently large cap indices have been supported by megacap growth stocks and today they are being sold along with most stocks. Long term yields continue to fall which pressures the financials and small cap indices. SPY has fallen to 428 which is a logical support level. There are unfilled gaps below at 425 and 423 which can potentially tested should support fail.  430 is a short term target on a bounce, which needs to hold to validate a bounce. The only positive sectors are gold and bonds. FANG stocks are critical for a bounce but they are extended.

Stocks to Watch

Earnings LEVI

Indices TLT YEN GLD /BTC TAN ARKF KWEB ARKK EWZ ICLN ARKG EEM PRNT ARKQ JETS XLF SMH MSOS XLE IWM

S&P500 NEM KSU CCL FCX APTV NCLH AMD OCY TWTR MU F UAL NVDA FTI AAL NVDA TSLA WFC BAC

Movers LEVI AMC WISH CLNE SPCE HELE FME CLOV RIO SOFI BB CLF OXY UAL

WSB all down

Stock Idea; FNV

Franco Nevada is a gold royalty company which tends to be a lower volatility way to trade gold. Can benefit from a rise in gold.