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Swing Trade Ideas – February 8, 2021

Market View

In the premarket world indices are positive with USA, Europe, Japan,  China green, Hong Kong red and Asia mixed. US dollar is positive but is not hurting commodities. Yield curve is steeper which is positive for financials and small caps. Twin memes today are USA govt stimulus which looks likely and TSLA investing $1.5B in bitcoin. USA indices are statistically extended but lower volatility provides an environment for higher prices into monthly options next week. Premarket leadership in the small cap momentum stocks, energy and biotech.  FAANGMT stocks are supportive to large cap indices but not leading. TSLA was down on China news but reversed hard on the bitcoin news. Bitcoin has  additional rocket fuel with Musk supporting to add to the US government currency debasement.

Premarket names:

Bitcoin MARA BTBT RIOT SRAX MSTR GBTC  MSTR XNET DPW Pre-earnings runners MT YETI ZNGA GPN CCJ GM Z CSCO DDOG ENPH TTWO NET CRSP Relative Strength Leaders SI TDC MVIS GAN YY DDD APPS MGNI  ETFS PRNT ARKK ARKF ARKG XLE ARKQ SKYY GLD IWM XBI TAN JETS

Stock Idea; DDOGProvides cloud based monitoring of SAS applications. Broke out on daily chart with elevated call activity with the 120 strike prominent. Earnings Feb11 AMC. Look for a run into earnings but currently up in premarket so pullback entry preferable. TRP target 1 117.97 TRP target 2 129.92