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Swing Trade Idea – May 13, 2021

Market View

World markets are mixed with USA green, Europe red, Hong Kong red, China red, Asia red. Yield curve flatter which is negative for financials and can support tech. US dollar higher is weighing on some of the high flying commodities. US markets have been since 7am EDT led by Nasdaq and Small cap stocks.  Leading sectors are semiconductors, alternate energy, FANG and biotech. Lagging are the previous leaders: energy, metals and financials.  Gamma is negative for USA indices which leads to higher volatility. USA indices are oversold and a bounce was expected. Today we need to see if the bounce will continue or be sold. SP500 major support is 4000 and 4100 resistance. A drop in volatility will be a catalyst for a bounce as put positions are closed. Bitcoin is down on a Musk tweet, one can look for a bounce or continuation lower.

Stocks to Watch

Earnings BABA BAM BILI BMBL PAAS WISH YETI XPEV

Indices ARKK ICLN SMH FANG TAN QQQ XBI JETS XLY SPY XLE GDX SLV XLF DBC XLB GLD DIA BTC

S&P500 NCLH AMAT LRCX LOW TSLA MU MOS NVDA MCHP AVGO PYPL PRGO FCX SLB FTI SLB COP OXY EOG XOM DUK

Movers VRM ATRA PGTI XPEV AMC YETI TIGR BILI GOOS PSTG BAM PLTR GME ONEM HAE LMND GNW JACK BABA COIN

Stock Idea; QQQ

QQQ is the leading USA index in the premarket, oversold and moved down to support levels.  QQQ is the easiest instrument to play a bounce using an opening dip or VWAP as a level to lean against. One must be prepared for a pullback which can test the overnight lows but odds favor a bounce.