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Swing Trade Ideas – January 29, 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 risk-off signal and negative for equities and commodities. Yield curve is flatter so flow is not moving to bonds.  The buying ban on some highly shorted stocks was lifted and they are strong in the premarket. This will pressure the hedge funds holding short who will continue to sell long positions. VIX futures are inverted indicating risk is high. Key level for S&P500 to hold remains 3700, below which moves can be sharp. If trading the highly shorted names, be aware that the potential for another shutdown is a potential. All US indices are down more than 1% with major sectors all weak. FAANGMT are all red and as usual need to be watched as liquidation in the names can lead to a larger market drop. Conversely buying in these names will reverse direction and cause a short squeeze

Premarket names:

SWKS large beat, QRVO QCOM up in sympathy;  WDC up on earnings; LLY up on earnings; JNJ down on vaccine efficacy PFE MRNA up; NVAX vaccine efficacy good; Semis weak SNPS CDNS AMAT TSM; Bitcoin MSTR MARA RIOT BTBT GBTC;  Highshorted Names GME AMC BB CVM SRNE BBBY REV AAL IRBT DDS SKT TR; ETFS XRT GLD IBB XBI EEM ARKG XLE TLT ARKW ARKK DIA XLY QQQ XLI XLB TAN

Stock Idea; PAASSilver is latest product to be squeezed with high call flow Thurs. PAAS a miner which is leveraged to silver. It is short term extended so a pure momentum trade. Resistance at 34.91 and above that level 38.  Look for a pull on the shorter time frame if taking the trade long.