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Swing Trade Idea – May 7, 2021

Market View

Note: Jobs report released after writing. Usual playbook is buy growth (i.e. FANG) sell value.

World markets are mixed with USA green, Europe mixed, Japan green, Hong Kong green, China red and Asia green. Yield curve is slightly steeper. US dollar is lower providing support to commodities. USA markets are positive with the Russell leading. S&P500 bounced late Thurs from the 4150 gamma level to the 4200 level which is likely resistance unless the call wall is lifted today. Nasdaq is still negative gamma which will lead to higher volatility and potential for the late day rally. Econ news from China and Germany are supportive for world economies. USA non-farm payrolls will be released before the market open and may be market moving. S&P500 is extended in the premarket so odds favor pullback or consolidation. FAANGM are quiet premarket and TSLA soft. As usual watch the FAANGMT and 10yr yield for large cap index direction.

Stocks to Watch

Earnings DDOG ROKU NET ANGI PTON EXPE CCJ SQ MRNA VIAC  GPRO MCHP AMC BYND TRIP DKNG

Indices GDX XBI IWM XLB IPO XME SMH XLF XLE QQQ ICLN KWEB ARKG SLV

S&P500 EXPE MCHP EOG FCX CI VIAC NCLH COP CCL TWTR NKE MNST VNO FTI IBM PEAK

Movers GPRO ROKU CLSK DDOG GRPN VYNE PTON FNKO MCHP AMC CCXI AUPH SHAK TRIP JNJ

Stock Idea; PTON

Peleton dropped after a big run up due to Covid with the postponement of the treadmill the latest catalyst.  PTON beat earnings estimates with analyst estimates 60% higher. Treadmill revenue is minimal and likely will not impair the company. PTON is a day trade candidate above  $90 or on a pullback to VWAP with an appropriate stop.