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Swing Trade Idea – October 03, 2022

Color Key: Postive – Negative – Neutral

Market Setup- Pre 830ET 

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

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

•Yields: Yields lower

•US$ +.27% EUR -.5% YEN -.1% GBP +.34%

•News: USA: USA ISM MFG 10ET BOSTIC 905ET BARKIN 1145 George 1415ET Canada: MFG PMI 945ET Europe: MFG PMI 48.4 vs 48.5 Brazil: Runoff closer than expected  Oil: OPEC+ potential 1Mbpd cut

•Stocks:  TSLA -5% Deliveries < expected;  CS -5% meme of financial distress; WFC GS upgrade; VOD 3.8% potential merger VSAT +15% LHX potential acquisition PTON +5% HLT will add to fitness center

•General: Leading: Brazil Energy Biotech Small Caps Lagging: Bitcoin Consumer Discr, China Internet

•Indices: Global assets mixed after EOM. SPY 359.65  is below 360 gamma level which can serve as a pivot level with  365 and 370 targets above and support 356.5, 350. VIX 30.6  implies a 1.9% daily move. VIX futures are inverted which is a warning flag today.  Markets are in negative gamma which can lead to larger than expected moves. Smaller caps are leading which suggests a potential short squeeze.  Energy, biotechs and financials, and materials are leading sectors to fish today.  TSLA down by 5% is a must-watch.

•Stocks to watch  PBR EWZ DVN TS OXY BTU WFC XBI IWM  CS AAPL TSLA Spec Names HKD POSH 

Pre-800ET

Earnings

Indices EWZ XLE XOP XBI IWM TLT XLU XLB DIA SPY /btc XLY HYG KWEB /6e

S&P500 APA DVN HAL FANG OXY MRO HES PXD COP BKR SLB PSX CVX TSLA UPS

IWM AXSM PBF OVV TALO PTEN BTU MTDR BOX LTHM FRO

WSB CLF RTX BA AFRM PLUG TSLA BABA RIVN 

Trade Idea: TSLA
TSLA is down 5% on missing delivery expectations. Premarket low 248 and 250 is a major gamma level. Straddle approach,  potential long over 255.6 and short below 248 with target 240. Likely bounce candidate if the market bounces today.