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Swing Trade Idea – November 14, 2022

Market Setup- Pre 830ET 

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

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

•Yields: Yields higher

•US$ +.78% Euro -.7% Yen -1.3% GBP -.6%

•News: USA: Brainard 11ET China: Covid cases are rising, some property support Bitcoin: The FTX fallout is continuing Europe: Ind. Prod 0.9% vs 0.1%

Stocks: BIIB, LLY is gaining on the Alzh Roche drug failure  AMD +3.4% upgrade to 100 EPS BAC -1% downgrade BABA HD LOW pre-earnings run DIS layoffs

•Earnings up: YOU TSN MNDY FREY Earnings Down: XRAY LI

•General: Leading: Brazil China_Internet US$ Biotech Lagging:  Lithium, Spec_tech, Gold Miners, Faangmt

•Indices: USA indices are consolidating a small pullback premarket post on last week’s short squeeze. US$ and yields higher and weighing on financial assets but equity pullback is less than expected. SPY 397.5 support 396, 395  resistance 398, 400. Very high SPX open interest at 4000 which can act as resistance (likely) or a squeeze above. Very high same-day SPX options trading is driving markets so large moves in either direction in my opinion are possible. Brainard at 11ET will likely try to reduce expectations of Fed dovishness. The Healthcare stocks focus today with drug stocks likely bid (GSK, AZN, BIIB,LLY).  ARKK can be used as a short squeeze continuation signal, currently holding up the premarket.

•Stocks to watch  BIIB LLY AMD BABA COIN HOOD BAC FCX  Spec Names  MNDY GME AMC FREY

Pre-800ET

Earnings ERJ FREY LI MNDY XRAY YOU TSN

Indices EWZ KWEB /btc UUP IBB LIT ARKK GDX ARKF euro EFA faangmt IGV GLD SMH

S&P500 BIIB AMD LLY ENPH XRAY HAS FCX AMZN IP NEM MU XOM F TSLA TROW BAC MRNA UAL

IWM SI FRO PRTA CHK X HR SBRA AA NVAX CLF AI

WSB AMD BABA NIO HOOD COIN AMZN AFRM CLF UPST RIVN TSLA F

Movers SI MNDY BEKE BMRN BIIB JD YOU QFIN MANU BABA AMD BABA FREY NIO PDD  PRTA XRAY HAS MT HOOD CVNA GFI CHK FCX OKTA CNHI X RIO

Trade Idea: BIIB
BIIB is in play with Roche Alzheimer’s drug not meeting it’s endpoint.  Upgrade to $315 additional catalyst.  Premarket high 309 can be a momentum trigger or look for pullback > 295.  LLY is another name to play the same news. Pharma stocks in general appear to be favored today.