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Swing Trade Idea – November 8, 2021

Market Setup 

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

•Yield curve steeper with long rates higher – good for financials

•US dollar lower relative to Euro – good for commodities

•News: Congress passed the infrastructure bill; Elon tweeted a poll on selling 10% of his shares; China posted a record sales surplus but export growth slowing; 6 FED speakers today including Powell ; Cannabis stocks moving on possible USA legislation

•Stocks: Pavlovian response to infrastructure bill: X CLF CAT STLD FCX  DE AA PWR URI (roads bridges) Alt energy CHPT LCID PLUG QS Cannabis MSOS GRWG CLVR CCHWF HEXO VFF TLRY FAANGMT TSLA weak after Elon quote. TSLA has been lifting the large caps and the hedgies may come in and buy the dip but if they do not, it is a concern. NVDA AMD continue to be squeezed, watch for continuation – risk to downside if squeeze ends. Earnings TTD VTRS COTY

•Indices: Large cap indices are flat due to TSLA. Gamma is high so expect indices to not collapse hence TSLA weakness mean rotation into other names to support markets. Financials, energy, infrastructure, semiconductors and FB are candidates. IWM leading indices which are statistically very extended.

•Sectors: Leading: Blockchain, Cannabis, China Internet, Airlines, Solar, Steel, Mining Lagging: XLY TLT ARKK

•Stocks to watch:

TSLA X FCX URI AAL MSOS PAVE COTY LCID HUT MARA BAC

Earnings BRK EDIT LAC SAVA TTD VTRS COTY

Indices /btc MSOS BLOK KWEB JETS TAN SLX ICLN XME SOCL SLV XLB EWZ XLY TLT ARKK XLP

S&P500 VTRS URI CAT NUE VMC MLM PWR DE FCX UAL AAL LVS DAL REGN WYNN TSLA NXPI MRNA MRK LYV MET UDR

Movers EDU RIOT COTY VTRS CLF LCID NKTR SI AA TS NVDA APPN EXP BP RDS FE BX CPLG PRPL TSLA BLUE DNUT PLMR

WSB HUT RIOT ANY CLF GOEV PLUG WE AMC TLRY CLNE WKHS SDC RBLX NVDA TSLA ITUB SENS ITUB SKLZ OCGN

Idea GE:

GE broke out on daily chart with elevated volume and elevated call buying. GE is a diversified company with aviation and power businesses which may benefit from infrastructure spending and reopening.