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Swing Trade Idea – May 31, 2022

Market Setup pre-800ET

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

•Commodities:  Gold, Silver, Oil and natgas, Grains, industrial metals (aluminum, copper, nickel palladium, zinc)

•Yields: Yields higher and steeper

•News: USA: Biden meeting with Powell on how to reduce inflation (keep tightening??) Europe: EU end imports of non-pipeline crude from end of year -> higher oil prices; Eurozone inflation 8.1% vs 7.8%   China: Mfg PMI 49.6 vs 49.1, China Covid cases fell -> hope that will reopen sparking China stocks

•Stocks: UL Pelz appointed director;  GFI buying AUY+17%; AMC+12%  Top Gun strong; Bitcoin higher MSTR SI COIN BLOK short squeeze

•Indices: USA indices lower following last week’s squeeze. Nasdaq leading as reopening/value stocks pullback. SPY above 410 gamma level with 405&400 support and 415 resistance. QQQ above 305 gamma level which is support with 310&315 resistance and 300 lower support. VIX futures uninverted and < 30 which is supportive to equities. SPY 1.6% move based on volatility.  Watch the heavily short names which had large bounces last week for continuation or retracement. Retail and consumer discretionary sector in particular

•Stocks to watch: DISH TSLA PDD UL MRO APA  AAL Spec Names: MSTR SI RIOT AUY

Pre-800ET

Earnings BEKE BZ

Indices /btc KWEB EEM XOP XLE DBC BLOK SLV EWZ XLB EWZ yen XLV TLT

S&P500 DISH APA MRO OXY DVN CTRA EOG TSLA FANG VLO ALB UAL LIN DAL NCLH AAL GS MTB

IWM MSTR AMC SI NEX OVV STNG CRK MTDR GME FRO AEO LTHM NTCT X

WSB MSTR AMC NIO COIN BABA TSLA RIVN GME

Trade Idea: PDD
PDD is a Chinese retailer which is breaking out on meme that China will be ending the Covid lockdown as of June 1. Stock is stretched in the premarket and suggest looking for pullback post 1030 for long entry. Note China stocks are very volatile. Lower USD vs Yuan is positive for China stocks. Premarket 52 can be used for momentum breakout or pullback to 48 for swing