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Swing Trade Idea – January 7, 2022

Market Setup Note: written pre FOMC

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

•Yield curve unchanged

•US dollar lower

•News: USA: non-farm payroll and UE rate 830ET – major market mover; Europe: Industrial production missed, CPI higher than expectation

•Stocks: Samsung revenue better than expected – memory prices stabilized [MU]; GME story that launching a NFT and Crypto biz; STM revenue beat; AMC accepting Dogecoin and Shiba for payment LOL; BABA AR glasses for virtual meetings; TECK coal futures rising; HUM big drop Thurs on lower guidance [CNC ANTM CI ]

•Indices: SPY, IWM, QQQ are currently in negative gamma which can lead to higher volatility. QQQ is below the expected move for the week and weakness in large cap tech is a risk for large cap indices. SPX 4650 is a pivot level where selling can accelerate and 4700 a pivot level which can serve as resistance or buying above. Watch the FAANGMT especially TSLA and AAPL for large cap direction

Sectors: Leading: China Internet, emerging markets, energy, gold miners, spec tech Lagging: Silver, Cannabis

Stocks to watch: GME STM F TSLA AAPL Spec Names: AMC TTD ZIP

Earnings AEHR AYI GBX

Indices KWEB EEM XLE XOP GDX TAN LIT XBI ARKK SOXX JETS XLY /btc MSOS SLV

S&P500 DISCA F ILMN HSIC DAL TSLA DXCM APA OXY FCX NVDA SBUX TMUS TXN VZ V AWK AOH DRI

Movers DISCA F ILMN HSIC DAL TSLA DXCM APA OXY FCX NVDA SBUX TMUS TXN VZ V AWK AOH DRI

WSB GME AMC BABA F SPCE TSLA SOFI PLUG DWAC

Trade Idea BABA

China Internets are extremely risky and a bet that the CCP is finished punishing the names. China Internets have been getting a bid and BABA is moving out of consolidation with minimal volume resistance until  130 and then 142. High call buying in out of the money calls at the 140 and 150 strikes indicator traders are buying the dip. Handle with care!