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Swing Trade Idea – September 8, 2022

Market Setup- Pre ECB and Powell

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

•Commodities:  Gold, Silver, Oil and natgas, Grains, Industrial Metals

•Yields: Yields lower

•US$ -.43% EUR +.41% YEN +.45% GBP +.46%

•News: Europe: Monetary statement 815ET; USA: Powell 910ET

•Stocks: BILI -8% earnings; ASAN +23% beat and raise; GME +6% EPS beat, lost less; W -9% convertible; FSLR +3.5% upgrade; AMD +1.2% upgrade; AEO -13% earnings

•General: Leading: bitcoin Brazil Gold Miners Solar Commodities TLT Lagging: China, Emerging Markets, ARKK, biotech, technology

•Indices: US indices consolidating after Wed short squeeze and did not react to expected ECB rate increase. SPY 398 is below 400 major resistance and above 395 support.  QQQ  299 is below 300 major resistance with 295 and 290 support. VIX 25 implies 1.5% daily move.  Macro set-up is favorable with rates and US$ lower notwithstanding rise in oil. Wed was a clear short squeeze and potential for continuation if SPY > 400 and QQQ > 300 but take care if premarket lows are breached. Metals, solars, and bonds outperforming and potential day trade ideas.

•Stocks to watch:  OXY EOG  AMD FCX KO  AAPL BABA TSLA  AEO Spec Names: ASAN RVNC GME

Trade Idea: AAPL
AAPL is weak premarket post the iphone14 release.  If market is weak on the open, AAPL can be a potential bounce trade if price > 153.61 but below it’s a potential short. Market will follow AAPL.