Swing Trade Idea – August 31, 2021
Market View
•Global markets are mixed with USA red, Europe red, Hong Kong green, China red, Asia mixed
•Yield curve steeper with long yields rising. Usually negative for FANG and positive for financial
•US dollar lower is helping gold
•News: China services PMI moved below 50 to 47.5 and mfg PMI missed at 50.1; French consumer spending fell 2.2%; UK consumer lending dropped; Hurricane IDA no lasting damage to gulf oil production; ZM fell post earnings with growth forecast lower; AAPL down with S Korea passing a bill forcing them to open app store to third party payment services; MRNA higher on AMA report that 2x the antibodies vs PFE/BNTX; HOOD down on SEC chairman saying ban of payment for order flow on the table
•USA indices are all slightly negative with DJIA slightly outperforming. Indices are very very short term oversold but medium term overbought with little volume support below so should be prepared for BTD or a move lower. SPX range into Sept OPEX 4450-4500
• Leading sector ETF is KWEB with China internet stocks bouncing perhaps following NTES earnings beat but note that the move up occurred in overnight Hong Kong trading and one should gauge the USA reaction.
Stocks to watch: DBI APPS CRSR ZM PDD
Stocks to Watch
Earnings DBI FUTU NTES ZM
Indices KWEB EEM GDX ICLN SLV GLD SOCL /BTC ARKK XLE TLT IWM DBC SPY XLB
S&P500 MRNA TXT NWSA NEM LUMN NWS LOW NEE AVGO VTRS BAC WFC NXPI KHC K MTB IPG LMT SLB JNPR
Movers STG APPS DBI FNKO BABA CAN DVAX VLDR MGNI ZM FIVN FUTU BHP DOCU BNTX AAPL
WSB CRSR SPCE AMC TTCF GME ROOT NIO BARK ASO GSAT HOOD AFRM SENS FIGS ARVL HOFV CLOV
Stock Idea; CRSR
CRSR designs and markets gaming and streaming peripherals. This is a day trade idea based on WSB sentiment and 9.7% short interest. Premarket resistance is 29.93. Target is 32 which is a volume by price level. Could use a move above the premarket resistance as a trigger or use a premarket dip that holds. Would watch option activity to see if calls come in. Caution speculative.
