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Swing Trade Idea – December 22, 2021

Market Setup

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

•Yield curve slightly flatter

•US dollar lower relative to Euro and commodity currencies

•Commodities mixed with strength in silver, softs, nat gas and palladium

•News: USA: GDP premarket, Consumer Confidence 10ET, Oil inventories 1030 ET; UK GDP QQ miss; Covid: Data from SA indicates Omicron less severe than Delta however UK study found no difference; China suspended Alibaba Cloud Computing and ordered state owned companies to move to a state backed cloud system; VOYA added to S&P Midcap400

•Stocks: KMX earnings beat; BB earnings beat; TSLA tweeted he has sold enough

•Indices: USA indices are consolidating the gains from Tuesday. S&P gamma positive should lead to lower volatility. SPX resistance 4650 & 4700 and support 4642 & 4624 with 4600 a level that can lead to sharp declines

Sectors: Leading: SLV spec tech, airlines, small caps Lagging: China internet, biotech, semis, emerging markets

•Stocks to watch: 

TSLA KMX BABA Spec Names: VIR BIGC

Movers

Earnings BB KMX RCAT

Indices SLV ARKK XLY JETS EWZ IWM KWEB XBI SMH EEM

S&P500 TSLA KMX CAT DRI PCAR GD HAL GPN CCL AAL USB XLNX MO PMRL AMD

Movers RCAT VOYA BIGC LC XPO CAT KMX DRI GWH ALLK ADGI BABA CGC WISH

WSB TSLA USER SDC BARK SENS SKLZ ANY BABA

Trade Idea TSLA

TSLA is the key stock in today’s trading, dwarfing the other names. Catalyst is probably Elon’s tweet that he is done selling. Very elevated premarket, one can look long over the premarket high 977 and conversely look for a retracement below 960.