.

Swing Trade Idea – October 14, 2021

Market Setup

•Global markets are green with USA green, Japan green, Europe green, Hong Kong closed, China red and Asia green.

•Yield curve flattening in premarket usually positive for tech and negative for financials. Look for reaction to PPI report.

•US dollar slightly lower which is positive for equities and commodities. USD getting oversold so look for reversal

•News: USA PPI 8:30, UE claims 8:30, Oil inventories 11:00; China: PPI 10.7% Y-Y; USA govt requesting LA port to operate 24/7 will they have workers, and will China speed up the loading???

•Stocks: TSM beat and raise but tight capacity through 2022; MS, BAC,C EPS beat on reduction in loan loss; UNH beat and raise; WBA beat; DPZ miss; BA mfg issue on dreamliner

•Indices: USA indices have risen steadily overnight and overbought. SPX resistance 4385 and 4400 and support 4342 and 4302. Expect high volatility as long as SPX < 4400.

•Comment: Short term: US indices are overbought, US dollar oversold, long bonds overbought. SPX gamma can flip above 4400. Odds favor a pullback due to overbought but be prepared for a breakout as an alternate thesis. Yields falling favors the smaller, money losing, heavily shorted stocks in addition to commodities.

•Stocks to watch: TSM SOFI BYND SBSW MS AFRM NKLA FUTU

Stocks to Watch

Earnings BAC C DPZ MS TSM UNH USB WBA WFC

Indices SMH GDX XLE SLV /btc ARKK XLF ARKG HACK XLK IWM KWEB

S&P500 NTAP BAC UNH KMI UPS FCX PRGO WBA APA MRNA AMAT OXY LRCX PYPL AMD NVDA DPZ BLL ABBV BA ROST

Movers TSM SOFI PLUG UNH AA BAC BAC RIO RDS WBA OXY WBA OXY NOK UNG DPZ BABA AKBA SRPT

WSB SOI PLUG ANY HUT AFRM GSAT RIOT AMD OCGN BA IVR AMC CLOV HOOD

Stock Idea; TSM

TSM reported an earnings beat and increased guidance. Major semiconductor manufacturer, will perform well if semiconductors improve.  Stock has moved in the premarket so pullback entry preferred. Resistance at 116.55. Alternates in today’s trading AMAT, NVDA AMD