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Swing Trade Idea – October 19, 2022

Color Key: Positive – Neutral – Negative

Market Setup- Pre 830ET

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

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

•Yields: Yields higher

•US$ +.62% EUR -.7% YEN -.3% GBP -0.16%

•News: USA: Building Permits UK: CPI 10.1% Europe: CPI 9.9% Canada: CPI 0.1% m/m

•Stocks:  NFLX +12% subs beat DIS ROKU sympathy ISRG UAL ASML PG Positive EPS reaction ALLY ABT Negative EPS reaction GRC guidance-  AAPL cutting iPhone14 plus production;

•General: Leading: Airlines, Energy Lagging: China Internet, Gold Miners, Emerging Markets, Long Bonds, Spec Tech

•Indices: Global markets lower with large moves higher in US$ and yields. SPY 369  is below 370 major gamma level with 370 and 375  resistance above and support at 365 and 360 gamma levels. VIX 30.3  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. Potential for trend day down if SPY < 268 and QQQ < 268.6 with US$ and rising yields weighing on markets. AAPL warning may weigh on Nasdaq with risk if < 140.  TSLA is in play with earnings after the close.

•Stocks to watch  NFLX DIS ROKU UAL ISRG ASML BABA AAPL TSLA GNRC  Spec Names OLPX

Pre-800ET

Earnings NFLX ISRG UAL ASML BKR PG ALLY ABT

Indices JETS XLE KWEB GDX EEM ICLN TLT GLD ARKK EFA IWM XLK

S&P500 NFLX ISRG UAL BRK DIS AAL OMC PG ALK LRCX LUV ADBE AMAT GNRC MTB LVS AAP BBY ABT LOW WYNN

IWM LBRT PTCT FRO DNLI BL IRDM PLUG

WSB BABA WOOF NIO AFRM PLUG

Trade Idea: MSFT
IWM is pulling back with USA markets premarket and is currently weaker than large caps. Premarket low 172. Fade idea <172 with targets 170 and 167. Potential long > 173.  3% daily move expected.