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Swing Trade Idea – July 13, 2022

Market Setup

•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 Platinum Zinc)

•Yields: Yields unchanged ahead of CPI 

•US$ -.08% Euro +.09% Yen -.2%

•News: USA: CPI 830ET  1.1% m/m expected; 30yr bond auction 13ET Europe: German, French CPI met; Canada: BOC rate statement 10ET

•Stocks: DAL EPS miss – fuel&labour costs FAST -5% rev miss – prices raised, inventory growing TWTR Suing Elon MSFT Announced 1% job cuts Monday Software and security stocks had large drawdowns Tues (NOW ADBE SNOW ORCL CRWD PANW) U -6% buying IS +69%

•General: Leading: TLT KWEB ARKK GLD   Lagging: Bitcoin XLE XOP DBC LIT XLF DIA ITB IWM EEM SPY

•Indices: USA indices rising overnight post Tues pullback. SPY > 380 gamma level which is potential support with 375, 370 below and resistance 385 and 390. QQQ below 290 gamma level with support at 285, 280 , resistance 290, 295.  VIX term structure uninverted and at 27.15 is above Mon low,  1.5% move expected. CPI print will move USA stocks, US$ and yields. *** CPI is above expectation and indices moving lower.  Opens potential for further drawdowns, watch gamma levels for support or acceleration.  SPY currently 375

•Stocks to watch  DAL FAST  TWTR BAC AAPL MSFT Spec Names: BBWI CLVS CVNA

Pre-800ET

Earnings DAL FAST

Indices /btc XLE LIT IWM GLD SOXX QQQ XBI

S&P500 TWTR JNPR DAL FAST FCX

IWM NVAX X PMT

WSB GSAT GOEV COIN HUT CLF RDBX DWAC

Trade Idea: MSFT
MSFT dropped 4% Monday with many software stocks.  Should market move higher post CPI, potential bounce to 260, 265 or alternatively move lower to 250, 245. Straddle approach