Swing Trade Idea – February 23, 2022
Market Setup
•US markets green, Japan green, Europe green, Hong Kong red, China green, Asia green
•Yields: Yields moving higher last 2 days
•US dollar flat
•News: Ukraine-Russia: Limited sanctions imposed – bonds,gold, US dollar, oil pulled back signaling short term reduction in Ukraine war fears
•Stocks: PANW beat; CDNS beat; TJX miss div increase $2B buyback; CZR eps miss rev beat; CHGG accelerated buyback; OSTK missedbut ICE investing in tZERO, broker dealer which OSTK has 80% stake; LOW beat, raised guidance
•Indices: USA indices traded up overnight and pulling back in the premarket. Vix futures remain inverted and indices are in negative gamma which mean moves will be outsized and a daily move of 1.7% is expected. SPY resistance 435, 437.5 support 430, 425, 420. Premarket looks like short covering in tech& ARKK&bitcoin stocks and longs in financials with rates rising. Be on the alert for bounces in shorted names to be sold
•Sectors: Leading: EV, solar, semis faangmt Lagging bonds gold
•Stocks to watch: BAC LOW PANW (ZS CRWD) TSLA AMD TJX Spec Names: PLTR SOFI RIOT MNDY RXT
Pre-830ET
Earnings A BCRX BHC CDNS CWH CZR DOC EXAS FANG HFC LOW MOS
Indices LIT /btc ARKK TAN SMH ARKF ICLN SOXX EWZ QQQ XLK IGV TLT GDX GLD UUP
S&P500 CDNS CZR REGN LOW AMD AAL CCL NVDA TSLA AMAT PYPL BA F INTC UAL MOS TJX DGX NI
Movers OSTK MELI PANW STLA SOFI GME LOW PLTR FLR SQ SNY TSLA VALE CSGP MNDY VIPS
WSB SOFI PLUG GME NIO AMC HOOD AFRM AMD RIVN NVDA
Trade Idea OSTK
OSTK is a retailer that also has brokerage services for NFTs through tZERO. Catalyst for move is announcement that ICE is investing in tZERO, which is 80% owned by OSTK. Short interest is 15% which can help boost the stock. Premarket 45. Targets 48 and 50. High OI > 50 can lead to higher prices on a squeeze. Look for pullback at open for continuation long.