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Swing Trade Idea – July 9, 2021

Market View

World markets are green with USA green, Europe green, China green, Japan green, Hong Kong green, and Asia mixed. Yield curve is steeper with yields rising and providing a boost to financials and reflation stocks. US dollar lower is positive for equities and commodities. News: China loosening monitory policy as economy slows; PFE/BNTX seeking EUA for a Covid booster for variants; Biden possibly wanting to bring back net neutrality which is deemed negative for big tech (e.g. NFLX); USA adding 10 Chinese companies to the blacklist. USA indices continue to bounce from Thursday’s dip with small caps out performing and Nasdaq lagging. The recent outperformance of FANG, higher yields and net neutrality talk can hold back FANG. Call buying has been strong in AMZN and TSLA so all dips may be buying opportunities. Meme stocks are being bid premarket and had big recoveries Thurs – AMC was a big mover yesterday. CARV is a short squeeze name for traders with a strong stomach. SPCE in play again with the launch with Branson on-board planned for Sunday, will be interesting how it trades Monday. SPX call wall 4350 can act as resistance and 4300 is the gamma flip which can act as support but below price can accelerate lower. 

Stocks to Watch

Earnings LEVI

Indices KWEB XLF JETS IWM EEM XLI TAN XLB DIA XLY TLT /BTC GBTC

S&P500 GM NOV CCL NSC SYF NCLH AAL FANG C RCL F BAC DFS FLIR UDR HRL LNT

Movers STMP CARV BLUE BNTX NOV NIO LEVI TEX AMC GBX NSC SYF C WISH DFS F CLOV BAC SPCE SGH BB XL LNT

WSB AMC SHEN GSAT WISH WKHS F CLOV DLPN SOFI CLF SNDL GE TRCH SPCE BB

Stock Idea; IWM

IWM is extremely oversold and looking for a bounce with yields higher and a premarket rotation from Nasdaq stocks to others. On hourly chart TRP target 1 225.8 and target 2 228.37