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Swing Trade Ideas – January 25, 2021

Market View

In the premarket world markets are mixed with USA mixed; Europe red; Japan green; Hong Kong green; China;  and Asia mixed. USA dollar is slightly higher with the  Euro down.  The yield curve is flatter  with longer term rates lower which is negative for financials. The USA market is mixed with Nasdaq strong, Russell 2000 weak, DJIA weak and S&P500 slightly positive. The FAANGM stocks, which surged last week are surging again and with earnings this week for AAPL, AMZN, MSFT and TSLA.  There is strength in the China Internets with mainland China buying now, semiconductors,  small cap growth, genomics and stocks with high short interest. The reopening spaces i.e. financials, industrials and materials are all pulling back.  Today one must watch whether the FAANGM can continue to support markets. Note that FAANGM were very extended last week.

Premarket names:

AAPL and FAANGM;  AMD TSLA earnings this week;  China Internets GSX TCEHY TME PDD JD BIDU NIO BABA;  Squeeze names GME BB AUPH CCIV FUTU NNDM BBBY GOGO;  Bitcoin MARA RIOT BTBT GBTC XNET; Sector ETFs KWEB TAN ARKK EEM XLE XLF XLI IWM

Stock Idea; APT

ZYNGA is receiving heavy call volume as there is speculation of an acquisition.  Gaming related names are currently hot. Inexpensive stock so can be traded with shares, ideally on a pull-back or a breakout above 10.70.  Thurs it retreated at 11, so a level of potential resistance. There is high OI at the 11, 11.5 and 12 strikes.