Swing Trade Idea – January 05, 2022
Market Setup
- Global markets are mixed with USA mixed, Europe green, Japan green, Hong Kong red, China green, Asia mixed
- Yield curve slightly flatter with long bonds rising
- US dollar lower, usually positive for commodities
- News: USA:ADP employment 8:15ET FOMC minutes 1400ET; European service PMIs mixed; China: Regulator fined tech giants; BYND – YUM deal; Covid: China locked down another city, 1000 flights cancelled in USA Tues;
- Stocks: BYND YUM deal; SONY launches EV company; PLTR deal with Hyundai; PFE/BNTX shingles vaccine
- Indices: USA indices are slightly lower ahead of ADP with DJIA the strongest. SPX4800 is a major gamma level which will act as a pivot. Resistance 4825 and support 4775. Break below 4745 can lead to sharp move lower. Post new years the USA markets are preferring value over growth and large cap over small cap and premarket that is the current set-up. Nasdaq on the watch today with weakness in software and semis
- Sectors: Leading: Energy Financials Materials TLT Lagging: Lithium China Internet, Spec tech
- Stocks to watch: CCJ CLF INTC TSLA ADBE CRM Spec Names: BYND PLTR
- Movers
- Earnings
- Indices XLE /6J XOP XLF /6e XLB TLT GLD LIT KWEB ICLN EEM TAN ARKK SOXX ARKG
- S&P500 PFE CVX T INTC MET XOM CRM ADBE AMGN F TSLA NVDA AMT SO
- Movers SONY PINS NKLA DB BP PLUG CVX INTC SWIM SGH ALGT AMC FCEL TSLA CCI BABA NVDA AMT
- WSB CCJ PLUG CLF NIO AMC HOOD TSLA BABA AFRM NVDA SOFI SPCE
Trade Idea CCJ
CCJ is strong in premarket and there is general strength in energy and materials. No particular news explaining the price moves but there has been elevated call buying in out of the money speculative calls. Short term overbought, one could look for weakness to swing long with 25, 27 targets.
