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Swing Trade Idea – July 1, 2021

Market View

World markets are mixed with USA mixed, Europe green, China red, Japan red, Hong Kong red, and Asia red. Yield curve is steeper which is boosting the financials at the expense of tech. US dollar is falling in the premarket and now negative which in turn is flipped USA indices into the green. News: OPEC+ is meeting and WTI is up 3% ahead of an official news release; China Caixan data indicated growth continuing to slow; USA jobless claims will be released premarket and non-farm payrolls Friday. USA indices are being led by the Russell 2000 with Nasdaq lagging. Russell has a large weighting in financials and energy and can benefit from the macro set-up. COT indicates traders are very short, which can lead to a squeeze today. Leading sectors are energy, gold miners, financials, small caps and biotechs. FANG stocks are muted and will likely lag after recent strong moves and an uptick in yields. TSLA is positive and should be watched today as car production data may be released today. NIO and other EV companies may release data today.  NIO is currently in a gamma squeeze and potentially can make a large move on positive data. S&P500 has concentrated large gamma which should  pin the index but below 4260 will flip negative which can lead to large downward moves.  Would be careful with energy as there is a pending news release from OPEC+.  Stocks to watch today: NIO, TSLA, WBA, MU, DIDI and IWM.

Stocks to Watch

Earnings MKC MU WBA

Indices XLE GDX IWM XLF JETS SLV ICLN XBI XLI DIA TLT HYG SMH TAN AGG EEM FANG

S&P500 FTI APA OXY DVN MRO COP WBA SLB CCL EOG DTE MU FLIR O SPG GD SYY BMY AMAT

Movers WOW AXL SKIN JAZZ XPEV MTOR NIO OXY APA BBBY MU RIOT PII O WISH

WSB NIO HOFV TTCF NOK IVR CLF CLOV MVIS PLUG GEO TRCH GSAT SENS RIOT SNDL WISH

Stock Idea; NIO

NIO is in the midst of a gamma squeeze which is driving the stock higher. Premarket high is 55.2 which can be used for a momentum breakout or alternatively one can look for a pullback. Catalyst is NIO report 8k vehicles delivered for the month which is 116% higher Y-Y.