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Swing Trade Idea – October 18, 2022

Color Key: Positive – Negative – Neutral

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

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

•Yields: Yields lower

•US$ +.14% EUR -1.3% YEN -.16% GBP -.43%

•News: USA: Industrial production 915ET, NAHB Housing Data 10ET UK: BOE QE on-off-on

•Stocks:  CI, GS+2.6%, JNJ+2.1, LMT+.7%, STT+4.7% positive earnings reactions SI -11% HAS -2.5% negative earnings reactions AR added to midcap400 MSFT layoffs LLY buying Akous TGT +3% upgrade FUBO +15% raised guidance

•General: Leading: Spec Tech, China Internet, Semis, Small Caps Lagging: Euro

•Indices: Global equity market short squeeze continues this morning in spite of US$ higher and yields unchanged. SPY 374.6  is below 375 major gamma level with 380 resistance above and support at 370 and 365 gamma levels. VIX 30.7  implies a 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. Short squeeze evident again today with some explaining as tactical asset rotation or BOJ action at midnight. Indices are now above the expected move for the week and can squeeze higher; however, pullback risk elevated

•Stocks to watch  GS PDD TSLA AAPL AR TGT  Spec Names CFLT AFRM NET NIO DDOG

Pre-800ET

Earnings ACI GS HAS JNJ LMT STT TFC

Indices ARKK KWEB QQQ SMH XLK XLY SOXX IWM ICLN FDN SPY faangmt /6e

S&P500 TSLA MTCH TGT BSX PYPL ETSY NVDA EXPE GNRC AMZN QCOM NVDA SEDG WYNN GOOGL

IWM AR APPS PLUG CROX AI GT NOVA GME RUN HLIT GDYN BE SI

WSB NIO UPST AFRM TSLA COIN NET PLUG RIVN NVDA AMD AMZN GME BROS

Trade Idea: ARKK
ARKK will continue to be in play if the short squeeze continues today.  Straddle approach with long over 37.87 with stop < 37.3 and target 40. If markets pullback, fade < 37 with targets 36.29 and 35. SHOP, SQ, TSLA, DKNG are holdings