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Swing Trade Idea – July 15, 2021

Market View

World markets are mixed with USA mixed, Europe red, Japan red, Hong Kong green, China green and Asia mixed. Yield curve flatter with long yields lower which is positive for tech and negative for financials. Long yields lower continues to be negative for financials. US dollar higher which is negative for commodities.  News: China  GDP and industrial production lower Y-Y; USA UE claims data and industrial production to be released and Powell to speak; NFLX up on news of a hire to run online gaming; Crude oil lower on a rise in gasoline supplies and rumor that OPEC+ are nearing a production increase agreement; MS earnings beat but being sold; AIG selling a business to BK; GM issue with EV battery fire and JNJ recalling Aveeno and Neutragena.  SPX has a large gamma level at 4384 that should support and expected range into OPEX is 4400-4300. S&P500 breadth is low and the FAANGMT stocks are supporting the market and these are moving with yields so keep these on your radar. NFLX is perhaps the FAANGMT stock to receive the flow today

Stocks to Watch

Earnings BK beat CTAS MS beat TSM (EPS miss) UBS beat UNH beat

Indices TLT EEM GDX SLV FAANGMT /BTC ICLN XLE XLF IWM XLI XLB SMH ARKK DIA EWZ XLV SPY XLP XLY ARKG

S&P500 AIG NFLX STX AMD DAL HON TSLA LUMN EOG APA FANG OXY MCHP MRO NCHL BK MS DVN EOG GE GM IVZ BAC

Movers NFLX PAG DAL HON SHLS AA AMC GME SPCE CHPT BB TSM PNC WISH FANG AZN CLOV MCHP

WSB OCGN ARVL TTCF AMD ITUB NLY TSLA AMC GME BB RIOT WISH CLOV TLRY GE MVIS NOK CLNE F

Stock Idea; NFLX

NFLX has been moving for the last few weeks and the news today on the streaming gaming is a catalyst for further upside, especially if the option buyers enter with size. Premarket high is 566 which can be used as a level for a momentum trade or alternatively one could look for a pullback where 550 would be a logical level for support if the stock remains bullish.