Swing Trade Idea – September 29, 2021
Market View
•Global markets are mixed with USA green, Japan red, Europe green, Hong Kong green, China red and Asia red.
•Yield curve flatter with the 10yr yield falling, usually positive for tech
•US dollar higher which is negative for equities and commodities
•News: USA: Debt ceiling still being debated, Pending home sales data 10AM ET; Europe: German import prices 16% Y-Y, Spain CPI 4% Y-Y; CB heads FED, ECB, BOE, BOJ speaking 1145AM ET
•Stocks: MU reduced guidance due to PC customers reducing purchases due to non-storage components. Also seeing constraints for IC components that will limit big shipments. BA 737MAX passed China test flight passed.
•Indices: S&P500 forecast from positioning: Resistance 4400 and 4416 Support: 4364 and 4300. Max move 1.8% today due to large negative gamma position. USA indices bounced overnight and pulling back since 6:30am ET with IWM and Nasdaq leading. Strongest bounces are currently in tech and high growth tech in particular. Careful today as they may STR versus BTD.
•Stocks to watch: DLTR BA MU LCID ATVI EA
Stocks to Watch
Earnings CALM MU WOR
Indices /BTC ARKK ARKF XLV XBI ICLN XLK SMH QQQ GLD SLV EEM XLE
S&P500 DLTR BA GPS LLY MRNA PYPL NVDA LRCX TER AMAT MU SHW NXPI EIX BEN NXPI USB HPQ ARE ITW COG
Movers FOLD LCID WOR BNTX AZN LLY GOEV PSTG VLTA DNN SQ PLTR PYPL EQT MU SOFI IRNT UNG NXPI TTE
WSB AFRM BA GOEV ITUB RIOT IVR OCGN PLTR PLUG SENS SOFI NLY BGS
Stock Idea; DLTR
DLTR is a discount retailer that has lagged competitors such as DG due to a fixed max price of $1. DLTR announced that they will increase prices > $1 and will increase the buyback program by $1B. Price target of 99 based on volume by price. DLTR PE =12 vs DG 19 so potential for outperformance. Trading up in premarket so look for a dip for entry.
