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Swing Trade Ideas – January 13, 2021

Market View

In the premarket world markets are slightly soft with USA weak, Europe weak, Japan green, Hong Kong weak, China weak and Asia mixed. US dollar is up, which is usually negative for equities and commodities. Yield curve is flatter, which is negative for the financials and small caps.  In absence of major Econ news and earnings reports S&P500 will likely stay in a range with 3750 a major support level and 3800 resistance. USA indices are not indicating a preference to small caps vs large. Volatility and put buying is increasing into Friday’s major option expiration and a break of 3750 can lead to a larger move to downside. FAANGMT is flattish premarket and one should look to them for direction once market opens.

Premarket names:

EV and Alt Energy FCEL PLUG BLDP RIDE;  Bitcoin DPW MSTR BTBT RIOT XNET MARA MARA offering weighing on stock;  GM strength and upgrade;  TSM run into earnings; PINS ETSY alternative to FB ; BIDU continues run; TTM continuation; SKILZ Ark Name; ZM secondary priced

Stock Idea; GM

GM has broken out on the daily chart after the CEOs presentation at the CES. Today there is an analyst upgrade to $60 which can provide a boost. Option call buying has been strong and may also provide a boost today.  GM can be day traded or swing traded. If day would look for a pullback to vwap. Swing ideally after a test of the breakout level.