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Swing Trade Idea – August 19, 2021

Market View

World markets are all in the red with international markets following the USA markets lower post the release of the FOMC report. Long term yields are lower, US dollar/Yen/Swiss Franc higher is a traditional risk-off signal. News: FOMC minutes are being interpreted as the FED may taper bond purchases; a UK study indicates that PFE/MRNA effectiveness dropped in half in 4 months; chip shortages continue to be an issue for auto mfgs; and AMZN has announced a plan to open physical retail stores. Earnings reports by NVDA, M, KSS are being rewarded and HOOD is punished for a weaker forecast. S&P500 is below the key 4400 level which can lead to market makers shorting as the index falls. 50d moving average is a level to look for support or potential bounces. VIX futures are indicating some concern but not indicating a major down move as Sept futures are lower than Oct.  Nasdaq is leading in the premarket and large cap FANG stocks are a safety trade. AMZN would be my choice today, it is oversold, a Covid winner and has news today that may attract some bidders but need to see QQQ stabilize.

Stocks to Watch

Earnings BJ BZUN CSCO EL HOOD KSS M NVDA

Indices TLT YEN GLD KWEB GBTC XME EWZ EEM XLE TAN XLB DBC IWM XLF ARKK

S&P500 SNPS BBWI M KSS NVDA EL ILMN FCX OXY DVN APA NUE CCL COG NCLH WYNN ALB HAL

Movers M SNPS KSS SENS NVDA BILL BJ EL HOOD RRGB YY BZUN ILMN BABA TJX AMC ZTO

WSB SENS NVDA HOOD RIOT GEO CLF SOFI AMC NOK  RBLX

Stock Idea; AMZN

AMZN is a bounce idea for the day with potential movement into FANG  and news on opening bricks and mortar stores. Stock is close to June lows. One can look for price to break over Wed lows with a tight stop. Watch the QQQ for confirmation.