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Swing Trade Idea – January 18, 2022

Market Setup 

•Global markets are weak with USA red, Europe red, Japan red, Hong Kong red, China green(mainland), Asia red

•Yields higher and steeper negative for tech

•US dollar higher usually negative

•News: USA: Empire mfg 830ET; China: GDP 4% vs 3.3%, Retail sales 1.7% vs 3.8%; Germany: ZEW 49% vs 29%;

•Stocks: GS missed; ATVI halted on rumor that MSFT buying [TTWO EA RBLX sympathy possibly negative for Sony]; HAIN miss; PNC SBNY BK beat; BABA report USA is examing cloud unit for security risk; CTXS takeover rumor; UL GSK rejected 3 takeover proposals

•Indices: Higher yields and inflation concerns are catalysts for global market weakness premarket.  Higher yields in particular are negative for tech and high valuations. USA indices are negative gamma which means that selling will lead to selling but strong bounces are also possible. SPX support 4600, 4575 resistance 4650, 4700. QQQ is the key index with support 375 370 resistance 380 385. Look for oversold bounces with risk management below premarket lows

•Sectors: Leading: Energy, Commodities, CDN dollar Lagging: China internet, Tech

Stocks to watch: ATVI EA TTWO GS BABA TSLA Spec Names: PLTK RBLX BNTX

Earnings BK GS HAIN  PNC SBNY SI TFC

Indices XLE XOP DBC FXC SLV /btc KWEB ARKK ARKG ICLN HACK QQQ fang XLK SMH XLY IBB JETS IWM SPY

S&P500 CTXS FANG DVN COP UAA GPS MRNA GS ETSY NVDA DAL ENPH FTNT PYPL SEDG TSLA SNPS FB MSFT AAPL

Movers ATVI BP KSS AZN UAA TTE MOLN SI BABA CS AMC ABNB MARA CLOV WISH PLTR SOFI

WSB DWAC BABA RIOT HUT SDC AMC RIVN AFRM NET PLTR NVDA TSLA SOFI TLRY GSAT HOOD

Trade Idea PLTK

Playtika is a mobile game developer headquartered in Israel. This is a speculative idea based on the ATVI acquisition. 14.93% short interest can lead to a short squeeze. PLTK premarket is trading 20 with premarket high 20.5 which can be used for a momentum breakout or target on a pullback