Swing Trade Idea – December 17, 2021
Market Setup
•Global markets are weak with USA red, Europe red, Japan red, Hong Kong red, China red, Asia red
•Yield curve flattening in premarket with long yields rising. Supportive for growth but also a risk-off signal
•US dollar weak relative to Yen and Swiss Franc = risk-off signal
•News: Europe: German PPI m/m < expectations, German Biz Climate index 5th month of falling; UK: Retail sales > expectations; Covid: China increasing restrictions but SA hospitalizations low;
•Stocks: FDX earnings beat & raise and buyback; RIVN earnings miss & production constraints; CERN potential acquisition by ORCL; AFRM and SQ investigated by Consumer Protection Bureau for Buy Now Pay Later
•Indices: USA indices are moving lower in the premarket with QQQ weakest and FAANGMT weak. AAPL, TSLA, NVDA leading to the downside. SPX key levels: Support 4600, 4625 Resistance: 4664, 4696. In today’s Opex 50% of stocks have gamma expiring. With QQQ and IWM in negative gamma, there is an opportunity for a bounce next week as puts expire. Nasdaq rebalance at close high volume today
•Sectors: Leading: Gold miners, TLT, Staples Lagging: China Internet, Tech, bitcoin,
•Stocks to watch:
FDX GDX CERN MRK ADBE LEN Spec Names: VIR HL ARKK
Movers
Earnings DRI FDX WGO
Indices GDX TLT SLV GLD XLB XLP XLI KWEB ARKK /BTC XLK QQQ fangm SPY EWZ EEM IGV IWM TAN
S&P500 CERN FDX UPS MRK EW IVZ ABT NEE HON IRM CSCO SCHW ORCL DRI GM NVDA AMD JNJ SBUX AAPL F TSLA
Movers CERN EPAY FDX IVZ MRK EW IGT MV WGO FRPT RIVN FUTU ORCL DRI NVDA AMC JNJ PLTR GME TSLA
WSB PLUG AFRM NIO AMC NET NVDA RIOT AMD PLTR CLF BABA TSLA
Trade Idea FDX
FDX earnings beat and raise and increased the share buyback. Premarket trading 252.5 with the premarket high 260. Analysts have raised targets from 260-345. FDX is a low PE company which has been in favor.
