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Swing Trade Ideas – January 28, 2021

Market View

In the premarket world markets are weak with USA red, Europe red, Japan red, China red, Asia red. US dollar is up which is negative for equities and commodities and a risk-off signal. Yield curve is flatter which is negative for financials and financials in particular. Oil is lower which is a negative for markets. VIX futures are inverted with short term futures higher than longer dated indicated short term hedging and short term risk concerns. S&P500 is currently at a level where market makers will be selling as stocks fall. S&P 3700 is a critical level where volatility will spike and a large move down is possible. The large moves in the heavily shorted names is leading to hedge fund deleveraging their long positions, which are some of the best performing names. FAANGMT are weak and despite earnings beats will be weighing on the market. These are the key names to watch in today as further selling will take the market lower.

Premarket names:

AAPL FB TSLA earnings;  CMCSA beat; NOW beat; AAL beat and high short interest; High short interest GME TR CVM EBIX APT CLVS GOGO SKT INO PRTS FUBO SPCE DDS SDC CAKE; Bitcoin BTBT MARA RIOT MGTI ETFs JETS XRT IWM XLI XLB XLF XLP ARKG EEM TAN XLY QQQ ARKn

Stock Idea; FBFB has held up well with good earnings and a candidate for a bounce trade. Hourly break out above 275 with first target 286 but a lot of care required today.