Swing Trades Ideas – April 5, 2021
Market View
World markets are broadly positive with USA, Japan, Europe, Hong Kong, China and Asia green. Yield curve is steeper with long bond yields higher which is positive for financials and negative for tech. US dollar is slightly higher. USA stimulus plan was announced and includes money for charging stations, paving roads, rural broad band and water improvement. Jobs report Friday exceeded expectations and bond futures reacted by increasing the longer rates. Friday TSLA announced quarterly auto sales which exceeded analyst expectations by 4% which has led to price 7% higher and spurring the EV space across the board. Other news: GME is offering 3M shares which is leading to price down; Softbank is buying $1.2B of NVTA convertible debt which should boost other genetic testing companies.; India is down on more Covid cases and Oil is lower with OPEC increasing supply. Pre-market set-up is strength in small caps, financials, travel, semiconductors and momo tech. FANGS are mute ex-TSLA after a strong move last week and the usual pattern if rates increase. Strength in financials leads to IWM and DJIA leading. Nasdaq is lagging with the bulk of the strength from TSLA. If trading QQQ, watch TSLA to see if production in 1 quarter less than GM’s in 2 weeks warrants even higher prices towards Wedbush’s $1000 target or an opportunity to sell.
Stocks to Watch
ETFs ARKK ARKQ ICLN ARKG ARKF TAN ARKW JETS IWM XBI XME XLY SMH XLE TLT ARKK NVTA TSLA IOVA EDIT TSM CRSP CGEN PINS ROKU SPOT TER XONE PINS Z WSB Names TSLA RBLX AMC PLTR PLUG GOEV ARKK NIO TLRY APHA BB HOFV Relative Strength ASO AMAT TRMB LRCX DHI LPX Cannabis TRSSF TLRY CCHWF APHA GRWG VFF HEXO CGC ACB Momo NNOX NVTA CHPT SUPN JFIN TSLA WBAI BLNK RBLX SKLZ AI AMC VLDR Bitcoin EBON SOS GROW XNET OSTK BTBT
Stock Idea; IWM
Small caps benefit from high employment and higher rates. Full of smaller momo tech stocks so can outperform if the rotation back to small caps continues and rates continue higher. 228 is a breakout level on the hourly chart. Look for a dip on open for a long entry.
