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Swing Trade Idea – October 25, 2021

Market Setup

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

•Yield curve steeper with long bonds lower

•US dollar higher which is usually negative

•News: China expects new Covid outbreak to worsen and for affected areas to adopt emergency mode which means lockdowns; Covid cases are rising in UK, Germany, Russia and Australia. USA speaker Pelosi planning to bring the infrastructure bill to a vote this week.

•Stocks: PYPL announced they are not buying PINS which is leading to PYPL stock higher and PINS lower; TSLA momo continues higher on news Hertz buying 100k autos; DWAC still in play this week; FB earnings after the close KMB warned due to higher input costs

•Indices: USA indices are positive but lacking momentum ahead of earnings releases this week. QQQ is the leading index. SPX 4550 remains a major resistance level and 4450 support with additional downside below 4450. TSLA is the prime lifter of large cap indices in premarket but extended – possible for it to continue but any give back can be a drag on markets

•Sectors: Leading: bitcoin, gold miners, China, energy, emerging markets  Lagging: TLT social media Faangm stocks

•Stocks to watch: PYPL PINS TSLA HUT DWAC

Stocks to Watch

Earnings DORM FBP KMB QSR(rev miss)

Indices /btc GDX KWEB XLE ARKK GLD XLY EEM SLV JETS SOCL TLT EWZ yen faangm

S&P500 PYPL TSLA HPQ SLB OXY  OTIS APA NVDA MRO NEM RF WHR FB CCL MRNA TPR FAST TWTR MU FRT AAPL

Movers PYPL DWAC UNG TSLA MX XPEV HUT SMPL SLB SU OTIS PINS SBSW GME NVS FB CCL TWTR RQH AAPL CEO GE

WSB TSLA HUT RIOT NIO CLF ITUB HOOD CCJ MVIS NVDA  AMC NOK SENS BB HOFV GME WISH SPCE SDC

Stock Idea; PYPL

PYPL is not proceeding with a deal to buy PINS which led to the recent decline. Premarket is currently 253.  Potential recovery trade with resistance at 254 and target 200sma at 267.  Can be traded to long side as either a momentum trade above premarket high or an intraday pullback to VWAP