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Swing Trade Idea – June 10, 2021

Market View

Note: Pre-CPI print

World markets are mixed with USA mixed, Europe mixed, Japan green, Hong Kong red, China green and Asia mixed. Yield curve is steeper ahead of CPI which is positive for financials and small caps and usually negative for large cap tech. US dollar is flattish relative to the Euro after ECB provided an update on their bond buying program.  USA markets are currently being led in the premarket by small caps as financials and energy names are leading and FAANGM stocks are lagging.  The premarket set-up appears to be anticipating a CPI print that meets or beats the estimates but may change once the print is released. Gamma squeeze meme is continuing with IVR and CLF two new names to add to the list. Hedgefunds seem to be redirecting capital to the WSB names from the large cap names. S&P500 likely remains range bound between 420 VPOC support and 425 call wall resistance.  Caution suggested below 420 and extreme caution below 417.5. Otherwise look for rotation to continue between S&P sectors and squeezes in individual names with option flow the compass. Also keep an eye on FAANGMT, especially TSLA as they are sensitive to yield changes due to CPI.

Stocks to Watch

Earnings FCEL GME RH SIG VRNT YRD

Indices /BTC TAN XLE XLF JETS DIA XLI XLV EWZ ICLN GLD IYZ GDX SLV TLT QQQ EEM FANG

S&P500 NOW RMD FFIV NTAP UPS SLB AAL DFS NTAP MRO BA NUE HFC MRK DAL BIIB WMB NLS OMC PRGO AAPL NEM

Movers OXM RH SIG IOVA NOW DNB UPS SLB AAL LESL NTAP MTLS SELH FCEL GME PLBY CLVT FSK CLOV

WSB IVR CLF WISH UWMC RIOT WWE TWNK BARK CLNE GEO GME MVIS PLUG TLRY WKHS BB  CLOV SNDL

Stock Idea; CLF

CLF is an iron ore company that saw a surge in option buying Wed and is moving well in the premarket. WSB seems to have latched onto the name so continuation today is possible though a larger float name which is tougher to move.

Premarket high 24.68 can be used for a momentum long but prefer to look for an intraday pullback for a long with the premarket high as the first target.