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Swing Trade Idea – November 23, 2021

Market Setup 

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

•Yield curve steeper with long yields rising, usually benefits financials

•US dollar higher – raising issues in countries like Turkey

News: Europe: PMIs exceeded expectations;  USA: PMIs after the open; USA releasing oil from SPR;

•Stocks: BBY beat but weaker holiday forecast due to supply chain issues;  Earnings Losers: URBN BBY ZM AEO Earnings Winners: DKS XPEV GENI  Storage: WDC MU upgraded; SITM and EBS added to S&P indices

•Indices: USA indices are mixed with DJIA positive and NASI lagging negative. Monday the market rotated from growth to value as bond market priced in rate increases for 2022.  S&P500 gamma has dropped to the flip level of 4670 below which selling can accelerate. Concern since tech is heavily weighted in the S&P

Sectors: Leading: natgas, bitcoin ,China Internet, financials, metals Lagging: Gold, Silver, long bonds, technology

•Stocks to watch:  WDC/MU JD/NTES BAC BBY ZM Spec Names: SITM EBS XPEV

Movers

Earnings A URBN ZM ADI AEO ANF BBY DKS DLTR GENI MDT XPEV

Indices UNG /btc KWEB JETS XLF XLY XLE SLV GDX GLD TLT ARKF XLK

S&P500 WDC MU TSLA SJM FCX BAC KEY ABBV RF C BBY A GPS PTC DLTR EBAY QCOM

Movers CLMT BZ XPEV DY FTCH TTE URBN BBY BNTX SNN BURL ALL

WSB CCJ AFRM GOEV RBLX

Idea NTR

NTR is a potash supplier which is a play on higher crop prices.  High call activity in longer dated calls at the 75 and 80 strikes.  This is a swing idea versus a short term trading idea