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Swing Trade Idea – January 24, 2022

Market Setup 

Global markets are generally weak with USA red, Europe red, Japan green, Hong Kong red, China red, Asia red

Yields falling in premarket and curve flattening – usually supportive to growth

US dollar and Gold Higher – risk off signal

News: Bitcoin sharply lower with risk of spillover to risk stocks. Russia CB proposed ban  on mining and use of cryptocurrencies;  Russia-Ukraine meme today’s reason for market weakness; European PMI data mixed; USA mfg and services PMI 9:45ET – lower numbers likely positive for markets

Stocks:  KSS acquisition offers (M JWN sympathy); UL activist investor; VOD merger discussion.  Markets are oversold but negative gamma means selling will lead to selling. Financials and Tech are both weak which is a setup for a trend day down. FAANGMT are weak led by TSLA which is back to a major inflection level.   Major SPX levels which act as support and resistance: 4300 4400 4425 4475 4500.  4300 is a potential bounce level and 4400 a potential resistance level. VIX futures term structure is inverted which is high risk. SPX daily move +/-1.9%

Sectors: Leading: Retail, Cannabis Gold   Lagging: Bitcoin, Spec tech

Stocks to watch: KSS M ULJWN VOD TSLA AMZN NVDA Spec Names: MSTR MARA MTTR

Earnings HAL PHG

Indices XRT MSOS GLD TLT /BTC BLOK ARKK ICLN TAN KWEB LIT EEM JETS IPO XLY QQQ faangm SOXX

S&P500 CMCSA HBAN ANET CTRA HAL ENPH MRNA PFE SEDG TSLA F NVDA CCL PENN NCLH WYNN TWTR FCX

Movers KSS MSTR MARA PLTK COIN OZON SI YNDX DWAC MTTR UL VOD SOFI M JWN

WSB SOFI AMC GME HOOD CCJ NIO RIVN PLUG TSLA F PLTR BABA

Trade Idea TLT

Market weakness and large short interest is giving TLT a bid. Premarket high 144.3, 145.2 is volume resistance. Extended, so would look for pullback for a long. Bonds are being shorted, so possibility of a short  squeeze.