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Swing Trade Ideas – April 12, 2021

Market View

World markets are slightly negative after the strong surge late Friday. USA indices are red, Europe is red but Germany strong; Japan red; Hong Kong red; China red and Asia red. Yield curve is slightly is unchanged, US dollar is lower.  Oil is higher but most commodities are lower. There is no major planned news releases today. Powell was interviewed on 60 minutes and repeated the refrain that there are no plans to raise rates and Covid is still a concern. Many banks are reporting starting Tues and we may see a run into the earnings aided by a USB upgrade and positive GS comments in Barron’s.  Russell is currently outperforming in the premarket and  Nasdaq underperforming. Russell has lagged and with S&P500 & Nasdaq extended, a rotation would not be shocking. FAANGM stocks, which had large moves last week are showing some softness; however TSLA, which lagged is outperforming. Hong Kong stocks continue to be very weak; however BABA is up on announcement of the fine assessed by China regulators. NUAN is up on possible acquisition by MSFT. 

Stocks to Watch

Earnings APHA Indices XLE TLT GLD ICLN EEM GDX XRT QQQ SMH SLI TAN S&P500 BWA TSLA MRO WMB REGN APA XOM DHI CMG UAL CCL QCOM AAL TWTR DAL BA AMT Premarket leaders PT NUAN LMNX BABA SIG TREX CAN HGEN PLTR GS AMC

Stock Idea; BABA

BABA has been battered as China weakness and regulation has weighed on the stock. Announcement that China has fined BABA removes some uncertainty and can spawn some buying. BABA is outperforming in the premarket and may continue in RTH. It does have a tendency to bounce at the open and pull back so handle with care. BABA is perceived as relatively cheap on the fundamentals compared to companies like AMZN but China is a wild card.