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Swing Trade Idea – April 13, 2022

Market Setup pre-800ET

•Global Markets:  USA, Europe, Japan, China, Hong Kong Asia – Mixed  global set-up

•Commodities:  Precious metals, oil and natgas, Grains, industrial metals (aluminum, copper, nickel palladium, zinc)

•Yields: Yields unchanged but 10yr falling in premarket since 4ET. PPI print will move yields and hence tech and shorted stocks

•News: USA: PPI 830ET; China: Easing lockdown helping oil; Europe: GBP CPI Y-Y 7% vs 6.7% Canada: BOC rate statement Ukraine: Ongoing; FED: Brainard killed Tues short squeeze with comments on balance sheet reduction starting in May. IMO Fed wants market lower

Stocks: JPM earnings -42% Y-Y but buyback, raised LL provision. Will hit the financials; DAL  miss but forecast profit, fares +24%; PYPL CFO leaving; Premarket similar to Tues with beaten down and shorted stocks bid. Several large cap tech are at major support with AAPL and TSLA in the best shape.

•Indices: USA indices rose overnight from close and currently consolidating at key support levels. Key support levels: SPX 4400 QQQ 340, breaks below can lead to large downdrafts. Short squeeze higher is possible if PPI is less than expected.  SPY Support 440 435 Resistance 450 (gamma) 452 445 442.

•Sectors: Leading Airlines China Gold miners, Energy, semis Lagging bonds financials

•Stocks to watch: DAL OXY MOS SBSW CCJ EXPE RTX  JPM KMX   Spec Names: IPI  

Pre-800ET

Earnings DAL FAST INFY JPM

Indices JETS SMH ARKK XLE XBI KWEB EEM SLV XOP GDX yen TLT euro

S&P500 DAL AAL OXY DVN MOS CF LVS NVDA CZR PYPL T ABBV JPM ABT

Movers DAL TTE JBHT HL NVDA AMD SPOT AMC BAH TWTR AAPL  JPM REYN KMX

WSB CCJ RIVN NVDA TSLA AMD

Trade Idea: IPI
Intrepid Potash is a squeeze name in the fertilizer space to add to MOS and CF. Very extended name so must be handled as a momentum trade and ideally on a pullback. Options are spaced by $5 so 110, 115 are targets and 105 support.