.

Swing Trade Idea – December 29, 2021

Market Setup

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

•Yield curve slightly steeper

•US dollar  slightly positive

•News: USA: Pending home sales 10ET, Crude Inventories 1030ET; China: BABA looking to sell stake in WB to a state owned company as China reducing influence of tech giants;

Stocks:  VSCO $250M buyback TSLA HTZ rollout of EV on-track. FCEL earnings miss affecting BLDP

•Indices: USA indices are mildly positive in premarket trading in a tight range. SPX 4800 is strong resistance with some support at 4780 and 4750 and stronger support at 4700. Range trade expected due to seasonality but macro backdrop is weak so take care if premarket low is breached.  Steeper yield curve so look to financials to support the SPX with TSLA serving as the key Nasdaq stock. It looks like tax loss selling is continuing today so take care in ARKK names and others that are over owned and down year to date.

•Sectors: Leading: Lithium QQQ faangm Lagging: bitcoin,  China Internet, Silver

Stocks to watch: 

TSLA BAC MRNA LCID Spec Names: VSCO FCEL BLDP

Movers

Earnings FCEL miss; CALM miss;

Indices LIT QQQ XLY XLK fang XBI BLOK KWEB /btc SLV ARKK ARKQ GLD GDX TLT EEM

S&P500 WDC AKAM LLY TSLA LVS KEYS KMI MRNA LMT JNPR PFE J L ITW AAL FCX K NEM NCLH

Movers VSCO CALX LPL AKAM QDEL TSLA GME FCEL CALM DIDI HOOD DB BABA DAL PLTR

WSB TSLA GME AMC RIOT PLUG HOOD BABA AFRM PLTR

Trade Idea WDC

Storage stocks have been strong and WDC is attracting unusual call buying ahead of Jan 27 earnings with high open interest at the 65 and 70 strike. Premarket gapping with 64.50 high, look for pullback at open for a long swing with caveat that market needs to hold.