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Swing Trade Idea – June 11, 2021

Market View

World markets are mixed with USA green, Europe green, Japan red, Hong Kong green, China red and Asia mixed. Yield curve is flatter as yields have dropped after a record CPI print.  US dollar is rising in the premarket which tends to be a negative for equities and commodities. News is light: UofM sentiment to be released at 10am;  Two positive Covid tests on a cruise ship (all vaccinated) hitting cruise stocks; MCD reported a data breach in SK and Taiwan [maybe good for security stocks]. Indices are very muted with SPY and QQQ at the short term 2 standard deviation limit and SPY just below the 425 call wall. Most probable move (no guarantee) is for SPY to pullback and close at 422. A breach of 425 could lead to a squeeze to the top of the expected move 428.56. Thursday saw huge declines in the squeeze/heavily shorted stocks and large moves up in AMZN. Prior, the hedge fund capital had been flowing into squeeze names at the expense of the FAANGM. Today, one should watch where the funds are flowing. Premarket the squeeze names are strong and if this continues into the open,  FAANGMT may be muted and hence the indices. AMZN had huge option buying at the open Thurs and worth watching today. ARKK is also watching as it’s heavily shorted and correlated with falling rates. 10yr yield move caught many on the wrong side who foolishly thought that high inflation would translate into higher yields. If yields continue to drop, it’s fuel for tech to move higher. Options expiration today so look for sharp moves between 3-4 both in indices and squeeze names. Keep your head on a swivel.

Stocks to Watch

Earnings CHWY CHPT ENGH  PLAY

Indices /BTC TAN XME ARKK ICLN XLB FANG JETS SMH IWM HACK GLD GDX IBB XLV YEN

S&P500 FTI FCX MRO IP HFC APA OXY BIIB MU WDC NUE F MRK GPS BA TSLA VRTX INCY NCLH CCL PFE KSU NEM

Movers PGEN AMEH AMC VXRT IDEX CLOV WKHS ERJ GME SNDL BNGO BB CLNE VRTX LTHM ELY SNOW LOGI DB CCI

WSB SENS UWMC AMC WKHS GME SNDL CLOV SNDL RKT OCGN BBBY CLF BB WISH GOEV

Stock Idea; CRWD

Crowdstrike is in the security space and the rise in hacks including today’s MCD breach can be a catalyst for money to flow into this space. 

Security can also be traded through the HACK etf which is a basket of stocks. Note that if tech is muted today, CRWD may not perform so watch QQQ in parallel.