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Swing Trade Idea – August 2, 2021

Market View

World markets are positive with USA green, Europe green, Japan green, Hong Kong green, China green and Asia mixed. Yield curve is little changed. US dollar lower is positive for equities and commodities. Econ: China PMI lower than expectation and close to contraction; European PMI on average ok. Oil lower is being blamed on slowing China; however copper is higher. News: SQ announced earnings (beat) as well as the acquisition of Afterplay, an Aussie buy now pay later company; USA is expected to pass an infrastructure agreement this week which may explain the strength in the steel stocks and clean energy; China EV companies announced deliveries which exceeded expectations and has all the EV companies moving in the premarket. Lithium names move with the EVs. Leading sectors are China, clean energy, emerging markets, & biotechs with small caps the leading size factor. S&P500 will be supported by internal gamma and charm flows which can buoy markets until Aug18.   Markets remain risky but with low volatility, hedged out of the money calls are a way to participate. FANG stocks are looking ok in the premarket led by TSLA. I struggle to explain TSLA strength but USA building charging stations with infrastructure plan $ or perhaps large positions by elected officials are reasons.

Stocks to Watch

Earnings GPN ON SQ

Indices KWEB ICLN JETS EWZ EEM XBI XLF QQQ FANG ARKK SPY XLI /BTC TLT GLD HYG SLV AGG

S&P500 UAA TSLA FCX CCL STX MU GPS NCLH FITB NWL HWM FLIR PH CAG RMD EL

Movers XPEV TSEM LI FSLR GSKY LEVI TAL AVTR AMC BABA SQ TDS USM TGTX PH RMD RACE AZN

WSB WISH RIOT CLNE TSLA OCGN AMC HOFV MVIS CLOV CLF CRSR

Stock Idea; UAA

Underarmour has earnings this week and is currently moving up in the premarket. UAA has lagged NKE, SKX and LULU and is a candidate for a positive earnings move. Expected move into Fri close is +/-2.2 or +/- 10.7%. Premarket high is 20.86 VPOC 20.5 which could be a good buy level should it hold.