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Swing Trade Idea – October 15, 2021

Market Setup- Pre retail sales

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

•Yield curve  steepening in premarket usually negative for tech and negative for financials. Look for reaction to retail sales report and UM consumer confidence

•US dollar lower relative to most currencies but Japan down .6%

•News: USA retail sales and consumer confidence, expectation is a small drop in sales; SEC is approving an bitcoin ETF; China ordering state owned banks to speed up mortgage approval; Brent crude 7 yr high

•Stocks: AA EPS beat + 500M buyback + new dividend; JBHT beat; MRNA booster FDA approval after dissidents quit; PENN court approves theScore acquisition; TM decreased Nov global production by 15%; NIO says it can double production in 2022

•Indices: USA indices have risen steadily overnight and overbought. SPX resistance 4400 and 4450 and support 4342 and 4302. Volatility has dropped substantially after Thursday short covering and should result in muted upside.

•Comment: Premarket indices are more than 2 standard deviations extended to upside so would expect a pullback but need to be prepared for continuation.  Retail sales and consumer confidence may provide a rational for the next move. Premarket market is risk-on with energy, bit coin names, smaller tech and biotech leading. Would watch the open to see whether it will continue

•Stocks to watch: AA bitcoin (HUT MARA COIN SI) MRNA JBHT ARKK

Stocks to Watch

Earnings AA GS JBHT  PLD PNC

Indices /btc XLE EEM SMH XLF IBB IPO PRNT TAN ARKG ARKK IWM XLB XLV SLV GDX GLD TLT KIE

S&P500 JBHT MRNA FCX MRO GS OXY PENN AVGO TER CCL KLAC NUE HAL KMI BAC WDC NEM HRL LIN USB MRK

Movers AA HUT RIOT ATI MARA MRNA SQSP RRC XP TSM STLD UPST BB TWNK SPCE DCT CRSR SNCY KOS BABA

WSB NIO MVIS CLF OCGN BB TWNK TLRY AMD PLTR NVDA SPCE CRSR CLOV

Stock Idea; HUT

HUT is a bitcoin miner. Bitcoin is in play with confirmation that the SEC will allow a bitcoin ETF. Today catalyst is a Davidson target set at 20. Premarket high 11.25 is a level for a momentum entry. Alternate is a pullback to >11.  High call open interest at 12.5 can act as resistance.