Swing Trade Idea – December 23, 2021
Market Setup
Market Setup – Pre PCE report
- Global markets are green with USA green, Europe green, Japan green, Hong Kong green, China green, Asia green
- Yield curve slightly steeper
- US dollar higher relative to Euro and Yen
- News: USA: PCE, durable goods, personal income, UE claims 830 ET. US dollar/yields will move. China:Locked down Xi’an population 13M Covid: data continues to show Omicron less likely to cause serious illness and PFE, MRNA, AZN work but China’s Sinovac not as good
- Stocks: TCEHY distributing $16.4B in JD shares to shareholders taking position from 17% to 2.7%. Catalyst is antitrust concerns. TCEHY has positions in PDD, TSLA, SPOT, SNAP, SEA. QDEL buying OCDX. SGMS withdrawing SciPlay takeover
- Indices: USA indices trading higher with a tight range pre USA data. Small caps and spec tech outperforming. S&P500 4700 is resistance and 4675/4650 support. Indices are stretched so pullback, especially in reaction to USA data would not be a surprise. Beaten down former momo darlings may be in play today along with travel and leisure names
- Sectors: Leading: Brazil Trave/Leisure Small caps spec tech Lagging: bitcoin China internet, long bonds, silver
- Stocks to watch: SGMS LVS WYNN AAL JD Spec Names: LC ASAN MTTR
- Movers
- Earnings
- Indices EWZ JETS IWM XLF XLY ARKK XLE XRT DIA TAN /btc KWEB TLT SLV
- S&P500 LVS WYNN CCL AAL UAL DAL NVDA MGM PENN LLY LUV MU BA CZR MRK MRNA AMT MO
- Movers SGMS NKLA PHG HYZN NVDA TSLA KMX PLTR NVS PFE C AMD AMC JPM JD CROX MRK BABA
- WSB SENS NVDA GOEV NOK TSLA IVR ARVL BB SDC BABA MVIS SKLZ
Trade Idea MTTR – Speculative
Matterport is a spatial data company which is a play on VR and metaverse. Spec tech has been out of favor but has been getting bid in the last 2 days so this is a continuation trade for the short term only. Late Wed block trade at $24.15 can be used as a decision level. UOA Wed in the Jan21 30 calls. Premarket 24.67.
