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Swing Trade Ideas – March 26, 2021

Market View

World markets are positive with USA mixed, Japan green, Europe green, Hong Kong green, China green and Asia green, Yield curve is steepening sharply which is positive for the financials and small caps. US dollar is slightly positive which is neutral but commodity currencies are up signaling risk-off.  USA markets are setup for the rotation/inflation trade with banks, materials, energy leading and tech lagging.  News that banks can increase dividends and do buybacks post June is lifting bank stocks. Steeper curve is weighing on the FAANGMT stocks and hence the Nasdaq. Russell2000 is leading due to the strength in financials and energy stocks.  S&P500 is at a zero gamma level which makes it susceptible to large moves. 3900 is a key support level and 3950 resistance. Since Tues SPX has been making lower highs and lower lows which is a short term down trend. Today one should watch the financials and the FAANGMT. For the S&P to move higher, both sectors need to move up together. China stocks are dropping premarket, perhaps due to tensions between Taiwan and China

Stocks to Watch

Earnings BLNK EPS miss; GAN miss; YY miss;  ETFs XLE JETS XLF EEM IWM XLI FXC XLP TLT FXY QQQ SLV GDX ARKK

S&P500  LB NCLH OXY MLM CCL NUE MRO  APA FCX DVN  DVA EQR TSLA TXN INTC WBA PYPL ADP; WSB Names GME AMC RIOT GE TLRY NIO SNDL TSLA  Bitcoin BTBT XNET CAN EBON  News VUZI  secondary; NIO cutting production due to semi shortage; China stocks are dropping premarket, perhaps due to tensions between Taiwan and China

Stock Idea; NOC

Northrup Grumman is a defense contractor and Thursday was seeing strength in names like RTX, BA, GD and the ITA etf. May be related to tensions between China and Taiwan. NOC is breaking out on the daily chart and may continue with the tensions. One can look at the sector etf or other names in the sector