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Swing Trade Idea – December 01, 2022

Color Key: Positive – Neutral – Negative

Market Setup- Pre 830

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

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

•Yields: Yields are lower

•Currencies:  US$ -.55%, Euro +.34%, Yen +1.3%, GBP +1.1%

•News: USA: PCE, UE claims 8:30 AM ET;  ISM mfg, construction spending 10:00 AMET; Europe: weak mfg PMI China: Covid restriction meme continues

•Stocks: COST -2.7% online sales display -10%, CRM -7% EPS, OKTA +16% EPS, SNOW -4% EPS,  KR +3% EPS,  DG -5% EPS, BIG -9% EPS, LE -10% EPS, TD, BMO, CM EPS

•General: Leading: TLT Gold Miners, Small Caps, Spec Tech Lagging:  China internet, Brazil, and the US$ high yield bonds

•Indices: The USA indices fell overnight but are rising into the open. The $US and yields are lower with Powell’s speech continuing to lift the markets. The SPY displays a $408 support $406.7, $405, $400, and a resistance of $410, $415, and $420. The QQQ displays a $294 with a support of $292, $290, and a resistance of $295.  In my analysis, the markets are a mild risk-on ahead of PCE data with small caps leading. The ISM data is at 10:00 AM ET but in my opinion, may be market moving. I anticipate that the Indices and many stocks are stretched with a greater risk than reward, but a  short covering and chasing can propel indices to be higher. The SPY > $410 could lead to another squeeze higher.

•Stocks to watch  SNPS, KR, AAPL,  COST, CRM, DG, BABA, Spec Names OKTA

Pre-800ET

Earnings CRM, DG, ESTC, FIVE, GIII, KR, NTNX, OKTA, PVH, PSTG, PVH, SNOW, SNPS, SPLK, VSCO

Indices TLT, GDX, GLD, EFA, IWM, euro, ARKK, XLB, XLE, KWEB, EWZ, UUP, HYG, faangmt, bitcoin, XLP, AGG, XLK

S&P500 PVH, SNPS, KR, CRM, DG, COST, SYF, HRL, COF, HPE

IWM DAR, FRO, NTLA, GIII

WSB BABA

Movers OKTA, FIVE, PVH, HCM, SPNS, SPLK, PUK, NTNX, KR, BUD, UHAL, PSTG, CNHI, BTI, GIII, ESTC, SHLS, CRM, NTLA, XPEV, DG, FREY, SNOW, LI, FNF

My Trade Idea: TSLA
In my opinion, TSLA is in play in the premarket with the announcement of delivering trucks to Pepsi. I feel that TSLA is a short squeeze name that can have outsized performance if the squeeze continues today. In my analysis, the premarket high of $198.38 can be used for a momentum long with the first target of $200 or I will look for a pullback > $193 and a fade below $193.