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Swing Trade Ideas – February 16, 2021

Market View

In the premarket, world indices are mixed with USA green, Europe red; Japan green, Hong Kong green and Asia mixed. US dollar is down which is positive for equities and commodities. Yield curve is steepening in the premarket which is positive for financials and small caps. Oil lower is higher aided by poor weather in Texas. USA.  USA indices are being led by the small caps with sector leadership in bitcoin, small cap growth, semiconductors, energy, airlines, financials with large cap tech lagging. FAANGMT are modestly positive led by TSLA and tend to lag with higher yields. SPY and QQQ traders need to watch FAANGMT, especially TSLA, which is attracting put buyers.  Twin risk concerns are indices 2 standard deviations stretched and Vix curve extremely steep with expiration Wed. Currently counterbalanced by aggressive speculative call buying that needs to continue to prevent a market dip 

Stocks to Watch

Earnings CVS ZTS PLTR Bitcoin SOS SINO CAN EBON NCTY RIOT DPW SRAX MARA XNET IBD50 QFIN GNRC SCCO AMAT PYPL TSM APPS Semi AMAT WDC ON TSM MU SMH TXN ARKK  IRDM SSYS XONR TWOU TWST CERS TER NSTG ONVO EDIT ETFS ARKF ARKQ XLE ARKW JETS ARKK SMH PRNT KWEB TAN XLF XME DBC IWM GDX GLD TLT OptionsRoom WL MYT MP CLVR EXPC VFF HRVSF OPEN GRWG TRSSF TME SUMO EOSE

Stock Idea; ON 

ON is a semiconductor company that does not get the attention of the larger names but had high call activity last week. Semis are again strong in the premarket so are an idea for a short term trade. AMAT is another name for a run into this week’s earnings. Watch for dips at the open. Breakout level above 41.94.