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Swing Trade Idea – October 25, 2022

Color Key: Positive – Neutral – Negative

Market Setup – Pre 8:30 ET

•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$ +.02% EUR -.12% YEN -0.07% GBP +0.27%

•News: USA: Consumer Confidence 10ET UK: Sunak  PM Japan: Core CPI 2% Y-Y

•Stocks:  CLF -10% EPS miss affecting steel names; UPS +2.5% beat FDX sympathy; KO ADM GM beat; GE – guidance; XM +8% beat China stocks bounce

•General: Leading: bitcoin, bonds, staples  Lagging:  Materials, Energy, Gold miners

•Indices: USA indices are slightly lower, and declining in the European session. SPY 377 is above the 375 major gamma level with a 380 resistance above and support at 375, 372.5, and 370 gamma levels. VIX 29.6 implies a 1.9% daily move. VIX futures are inverted which is a warning flag today. Expecting a range day ahead of major earnings AMC. The consumer confidence at 10ET may move markets with inflation expectations. The market is positioned for deflation, premarket with yields lower, and commodities are weak. Tends to favor staples with KO as a catalyst

•Stocks to watch  TLT KO ADM TSLA GLW MMM CNC CLF Spec Names XM

Pre-800ET

Earnings XM GM GE UPS SAP KO HAL ADM CLF HSBC GLW CNC MMM BRO ZION RRC CNC DFS

Indices KWEB TLT XLP AGG faangmt XLB XLE GDX SLX DIA XLV XOP XME

S&P500 GM UPS GE KO CRL ROST HAL IQV F TWTR ADM FDX GLW CVS BALL MMM ZION BRO LIN IP FCX VLO CNC DFS

IWM ADTN LAUR CLF X FRO LBRT PBF

WSB BABA F CLF RIVN

Trade Idea: KO
KO is up premarket on an earnings beat with market positioned for staples with rates lower. Premarket high 59.35 with KO falling into the open.  Look for a pullback > 57.5 for a long entry and targets 60 and 61. PEP, KDP, MNST are sympathy names.