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Swing Trade Idea – February 04, 2022

Market Setup 

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

•Yields lower and curve flatter

•US dollar lower vs Euro but commodity currencies weak

•News: Europe: Retail sales -3% vs -1%; USA: non-farm payroll +467k vs +125k and revised Dec to +510k UE rate 4% vs 3.9%

•Stocks: AMZN  pop on EPS boosted by RIVN holdings not a great report IMO but big put interest led to squeeze; PINS, SNAP, BILL, U likely short covering bounce as were beaten down post FB, look for pullback,  CLX EPS miss on higher costs

•Indices: USA markets bounced on AMZN report but have been sold off since 2ET and reacted negatively to jobs report and are oversold premarket. Key levels: QQQ 352.5 SPY 445. Expect a bounce on open and suggest using the premarket low as a  line in the sand. Watch VIX for guidance. If AMZN is sold it will be a negative signal for the market

•Sectors: Leading: bitcoin faangmt Cannabis XLY XLE Lagging Brazil XLB IWM ITB TLT XLK

•Stocks to watch: AMZN FB AMZN TSLA SQ Spec Names: SNAP PINS LITE

Movers

Earnings AMZN AON ATVI BILL BMY BYD CLX EAF ETN FTNT HIG MCHP OTEX PINS REGN SKX SNAP U SKX

Indices /btc MSOS SOCL faangmt XLY ARKF ARKK FDN IPO XLF XLB XLI XLP XLV XLK DIA IBB SPLV

S&P500 AMZN TWTR ETSY DVN OXY SLB APA XOM CTRA GNRC HAL CLX F APD CI LIN GM C INTC CHD PRU

Movers SNAP ANY PINS AMZN SPOT AMC RIVN PENN CLX APD MT BIIB EXC ATVI ETN SBUX

WSB AMZN AFRM PLTR SPOT NET PLUG NIO F BA

Trade Idea QQQ

QQQ has been sold since the European open with general weakness aside from AMZN. QQQ has a major gamma level at 350 today which can serve as a bounce level or accelerated falling to 343-347.  Suggest watching 350 for a bounce trade or a potential short.  AMZN and VIX should be on radar today.