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Swing Trade Ideas – April 26, 2021

Market View

World markets are mixed with USA mixed, Europe mixed, Japan red, Hong Kong red, China red and Asia mixed. Yield curve is steeper which is supporting the financials and small caps in the premarket. US dollar is slightly weaker and providing a bid to commodities. Oil is the outlier commodity, moving lower.  Bitcoin is bouncing off a logical technical level.  The foreign markets are weak which in addition to upcoming earnings and Fed meeting can tamper the enthusiasm for equities. The premarket  is looking like the reopening/reflation names are outperforming with small caps, travel, financials  and miners favored. QQQ is lagging with semiconductors in particular weak in the premarket. TSLA is reporting after the close and is correlated with bitcoin so expecting a buying surge into the open but there is a pattern of opening surges being sold so be careful. S&P500 gamma is mildly positive and Nasdaq is negative, hence expect lower volatility in the S&P. S&P levels based on gamma are support 4150 and resistance 4194. As usual, TSLA and the FANGs are keys to watch. Steeper yield curve is usually a negative for them; however traders like to buy them in advance of earnings. Note that TSLA’s post EPS move will move the markets Tues so factor that into your risk planning today.

Stocks to Watch

Earnings CHKP beat; OTIS beat;

Indices XLF JETS IWM GDX XLB SLV ICLN XRT DIA KWEB TLT EEM QQQ XLE SMH XBI

S&P  OTIS FCX AAL CCL UAL DAL SPG KEY DFS SWKS UAA BA WFC ETSY MRO BY NVDA MU MCHP AVGO

Movers IMNM SEAH CAN OTIS COUR SAN VLRS CHKP KEY VIAC TSLA JBLU JNJ DENN GE AZN AMD

Bitcoin MARA RIOT CAN NCTY BTBT MSTR SOS EBON CLSK

Stock Idea; IWM

IWM was strong Friday and poised to breakout on the daily chart. IWM is outperforming in the premarket and the market is set-up for a bid to the reflation/reopening stocks. Premarket high is 226.88 which can be used for a long trigger.