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Swing Trade Idea – December 7, 2021

Market Setup

•Global markets are green with all major indices higher on short covering. May continue to trend but handle with care

•Yield curve slightly steeper with longer duration rates falling

•US dollar higher compared to Euro, commodity currencies bouncing

•News: Covid: meme that Omicron less harmful continues

Stocks: INTC spinning out Mobileye; MDB earnings beat; COUP beat but slowing;  SI secondary, ACAD +ve phase 3; Permira buying MIME

•Indices: USA indices continuing to bounce led by growth stocks and the most oversold/shorted stocks. Nasdaq leading and DJIA lagging. SPX above 2600 gamma flip and drop in volatility is providing a lift to markets. US indices are overbought so pullback on the open would be likely but dips are likely buys as long as SPX > 4600. VIX futures no longer inverted, which is supportive if VX continues to fall.

•Sectors: Leading: Bitcoin, China Internet, Spec Tech,  Travel, Semiconductors Lagging: Long bonds, Euro, Yen

•Stocks to watch: 

INTC MDB ARKK  COUP HQY Spec Names: SEDG RIOT CCL  

Movers

Earnings COUP HQY  MDB GTLB CONN DBI SUMO AZO

Indices /BTC BLOK KWEB ARKK TAN SKYY JETS SMH IPO QQQ XLK XBI

S&P500 INTC CCL LVS RCL ETSY JNPR AAL NVDA APA PENN EXPE PYPL MRK ROST

Movers MDB ACAD JMIA VIR INTC MQ BMBL DWAC BABA TSLA JNPR GME AAL HQY COUP

WSB RIOT SOFI BABA RBLX NIO AFRM NET PLUG TSLA PLTR AMC NVDA CLF SPCE AMD

Idea ARKK

Today ARKK is shaping up to be a short covering day which may continue or reverse ARKK holds many of the heavily shorted spec tech stocks.  Premarket high 98.17 is a long trigger or can look for a pullback > 95. Caveat risky trade for a short covering move