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Swing Trade Idea – December 9, 2021

Market Setup

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

•Yield curve flatter with long yields rising

•US dollar stronger, Yen stronger

•News: USA: UE claims premarket , 10yr bond auction; China: Evergrande, Kaisa cut to default by Fitch, China CPI below expectations PPI above; UK increasing Covid restrictions

Stocks:  Earnings:  GME RENT down RH HRL up;  CVS guidance raise; AAPL received a stay on App store ruling

•Indices: USA indices are slightly red premarket, consolidating above the expected move for the week. General market set-up is risk-off with US dollar, YEN and long bonds rising and large cap tech lower but outperforming. Range day expected as long as SPX remains above 4650.

AAPL and TSLA will be the key stocks to watch as they have been used to control the S&P lately

•Sectors: Leading: Long bonds Yen Lagging: bitcoin, silver, energy, natgas, small caps, semiconductors, spec tech

•Stocks to watch: 

RH CVS PFE GME AAPL  Spec Names: AUPH FROG COTY JMIA RENT

Movers

Earnings GME PATH RENT HRL RH CIEN CVS(guidance) 

Indices TLT yen /btc slv XLE UNG IWM SMH ARKK GLD XLK QQQ XLF XLB

S&P500 CVS HRL URI PSX HRL YUM PFE VTRS KHC DVN CHTR WYNN LUV WMB ALL PPL LVS FCX APD SPG

Movers RH AUPH SPI FUBO PLTR HRL PSX LCID DWAC KGC GME ADC ATUS ALL NVDA

WSB NIO PLTR GME

Trade Idea COTY

COTY is a cosmetic company and is intriguing due to large call buying in Feb 10,11 strikes and $10M of insider buying in the last month. Speculative swing idea.