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Swing Trade Idea – May 5, 2021

Market View

World markets are bouncing with USA green and Europe green. Yield curve is steeper which is a positive for financials but not for tech. US dollar is slightly lower which is supportive for equities. Energy remains strong which is supportive for equities. USA markets are being led by small caps and large cap tech, which fell the most on Tues. With major earnings reported the market is now more responsive to economic/macro reports. Catalyst for Tues drop was Yellen’s comment (later reworded) that rates may need to be raised to prevent the market from overheating. Today there is the ADP report pre-market and some USA PMI reports that may move the market, where beats may be negatives for the markets. FAANGMT as usual are keys today to watch due to the recent weakness. SPX key level is 4150 with the largest gamma with potential for quick moves below. QQQ is negative gamma so higher volatility is expected. Indices bounced overnight so keep an open mind for continuation higher or a retest of the Tues lows. USA Econ data will be released at 9:45 and 10ET so take care at those times.

Stocks to Watch

Earnings ATVI AKAM AYX CZR LYFT MTCH TMUS Z

Indices XME ICLN XLE ARKK EWZ KWEB TAN DBC QQQ IWM HACK EEM SMH SLV TLT

S&P500 ATVI UAA DVN AKAM OXY TMUS GM COP ANET NVDA FCX PYPL EOG VRSK WRK HLT AMT ETR

Movers ATNX CZR FDP ODP OMI UBER TSLA MRNA TSLA AMC RKT BTG COP TOT

Stock Idea; UAA

Under Armour had a big earnings beat but pulled back with the market Tues. Analysts are upgrading with targets $34-36. UAA is strong premarket. One can look for pullback after the open or use the premarket high of 25 for entry. TRP target 2 is 26.36