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Swing Trade Idea – September 20, 2021

Market View

•Global markets are red with USA red, Europe red, Japan red, China red, Hong Kong red, Asia red

•Yield curve flatter with long yields lower.

•US dollar positive, usually negative for equities

•News: China Evergrande likely default leading to other China developers down; iron ore down on China real estate concerns; FOMC meeting Wed and OPEX Friday is leading to higher volatility; oil lower on increased Gulf production

•Stocks: NTSB head criticized TSLA rollout of driver assist software; PFE announced Covid vaccine induced positive response in 5-11 yr olds;  CVS hiring 25k people to administer flu shots; NFLX Emmy winner

•S&P500 gamma levels indicate resistance 4415 and support 4360 and 4310. In negative gamma state, market makers will sell as the market falls. Based on premarket set-up, a 2% move today is expected

•VIX futures are currently not inverted i.e. Oct Vix is less than Nov. If Oct moves above Nov it can indicate a larger move down

Stocks to watch: PFE NFLX CVS BABA

Stocks to Watch

Indices TLT YEN GLD GBTC XLE KWEB EWZ SLX XLF TAN ARKK XLB EEM ARKQ IWM

S&P500 CL FCX APA OXY ALB NUE PENN  F MOS GM CCL SLB MRNA C

Movers VSTM SDC BRKS RUTH AZN CL MT AMC DNN LPI RIO IRNT ASTS CAN LI

Stock Idea; SPY

SPY volume by price support is approximately at 434.17 which corresponds to the Aug lows.  This can be used as a line to lean against for longs to play a bounce.  The level below is 422, which corresponds to the July lows.