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Swing Trade Ideas – February 25, 2021

Market View

World markets are mixed with USA mixed, Europe red, Japan green, Hong Kong green, China green and Asia green. USA econ data today: UE claims, durable goods, GDP and pending home sales.  US dollar is lower significantly which is positive for commodities and foreign equity. Yield curve is significantly steeper which is positive for financials and negative for large cap tech.  USA indices are still reflecting the rotation from large cap tech into reopening stocks. FAANGMT are all red premarket which is weighing on the Nasdaq100 and the S&P. FAANGMT weakness is a risk for the large cap indices as if financials are sold, the large caps will lose their support. SPY currently is at the 390ish consolidation level and which has been a magnet for the last few weeks. SPY key support is 380 and 385 is a pivot level. The short squeeze might be back with GME, AMC, BB etc back in play which is not positive for large cap equity indices. NVDA beat earnings estimates but stock is trading down and weighing on the semiconductors which have been leaders. Leading sectors are energy, financials, airlines and laggards are momo tech, gold miners, bonds and semiconductors. The set-up is bearish but keep your head on a swivel

Stocks to Watch

Earnings LB APA SJM BBY PWR NVDA BBY Relative Strength ETFs XRT XLE XLF JETS DIA ARKn GDX TLT GLD XLY Short Squeeze KOSS GME Bitcoin MARA CAN EBON RIOT OSTK  

Stock Idea; TMUS

T Mobile is a defensive telecom and better positioned as it did not spend as much as its competitors in the latest 5G auction as it already had sufficient spectrum. TMUS is stretched in the premarket, one could look for weakness for a swing or a longer term position.