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  • Swing Trade Idea – October 13, 2022

    Oct 13, 2022 Uncategorized Comments Off on Swing Trade Idea – October 13, 2022

    Color Key: Positive – Neutral – Negative

    Market Setup- Pre 830ET  Note CPI is leading to a market pullback

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

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

    •Yields: Yields lower

    •US$ -.46% EUR +.41% YEN +.04% GBP +1.47%

    •News: USA: CPI UE claims 830ET Europe: German CPI 1.9% m/m

    •Stocks:  DAL TSM WBA DPZ positive earnings reactions

    •General: Leading: Airlines, materials, small caps, Brazil, Healthcare Lagging: Bitcoin, China Internet

    Indices: Global markets rising premarket in advance of CPI data with US$ and bonds higher. UK potential reversal in budget calming bond market and strengthening the pound. SPY 360.5  is at a major gamma level with 361, 363, 365 resistance above and support at 355.8 premarket low and 355, 350 gamma levels. VIX 31.5  implies 2% 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. CPI will be a major market mover. With large levels of put protection and high volatility, there is the potential for a large move higher if CPI print is not > market expectations. Potential exists for a sharp move lower if CPI > than expectations. In the latter case, still likely for a strong bounce as puts expire today.

    Stocks to watch:  DAL DPZ WBA SLV TLT   BABA GOLD Spec Names AXSM

    Pre-800ET

    Earnings DAL DPZ FAST INFY PGR TSM WBA

    Indices JETS IWM XLE DIA SPY XLV XLB EFA XLU XOP ICLN BTC KWEB GDX

    S&P500 DPZ WBA DAL UAL PFE AMCR AAL CMCSA MRNA CL CVS BAC KEY BA DVN AOS AMAT

    IWM AXSM NVRO RARE SAVE CRK AR AA PZZA PLUG CMC CLF PMT NVAX

    WSB OWL BA PLUG NET 

    Trade Idea: SPY
    SPY dropped to 349 post the CPI print and currently above the 350 gamma level.  350 is a line in the sand today for long/fade.  There is a high level of protection in place which can lead to bounces into EOD. Below 350 there is the potential for continuation to 345 and 340. Above 350 look for 355 and 360.

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