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Swing Trade Idea – June 1, 2021

Market View

World equity markets are generally green with USA green, Europe green, Hong Kong green, China green, Asia green and Japan red. Yields are higher and curve steeper which favors financials and supports the reflation thesis. US dollar lower favors equities, commodities and foreign equity.  Economic data from China and Europe is supportive of the reflation thesis with both PMIs and CPI rising. OPEC is meeting and Brent > $70 adds to the inflation meme. IWM is the leading USA index, benefiting from strength in energy, financials and small cap tech. USA ISM PMI and construction spending will be released at 10EDT will be market moving.  Leading sectors are foreign stocks, materials and energy but are substantially extended already. The WSB, gamma squeeze trade is continuing today with AMC BB APHA SNDL in play.  FAANGMT are positive but taking a back seat in the premarket.  First day of the month is usually strong and commonly front run so opening pullback with indices extended is likely. SPX above 4200, indicates the bulls are in control. Below 4175, the bears may be gaining control. Small caps on pullbacks to intraday support (e.g. VWAP) is a possible gameplan.

Stocks to Watch

Earnings BNS CGC KIRK

Indices KWEB EEM XLE /BTC EWZ SLV XLB IWM ICLN TAN XME XLI DIA JETS XLF ARK XLF SPY QQQ  TLT AGG HYG

S&P500 FTI DVN OXY PWR CCL AAL NCLH MRO BA AMD CF FCX MAR NUE GM FFIV NWS EXC

Movers CLDR AMC BTU CAN BB ALKS SBSW LX XPEV BABA BILI TIGR OTLY NIO PDD KOSS GFI AFRM FUTU TLRY YALA GOTU

WSB APHA AMC BB SNDL GME NIO TLRY PLUG GOEV RBLX AMD PLTR DLPN GE RIOT

Stock Idea; IWM

IWM is the simplest way to trade the reflation trade. Extended premarket so would look for pullback to vwap on the intraday.