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Swing Trade Idea – July 20, 2021

Market View

World markets are red with USA green, Europe green, Japan red, Hong Kong red, China green and Asia mixed. Yield curve has been steepening in the premarket which is providing a boost to small caps. US dollar slightly higher but commodities are generally higher led by aggs.  USA equity markets are bouncing premarket led by the Russell 2000 and DJIA. Premarket equities are broadly bouncing led by travel and energy, which were hit by Covid Delta concerns on Monday. Speculative tech was strong Monday and is strong in the premarket. S&P500 markets are negative gamma below 4300 which means that dealers will be sellers on moves down. 4250 is a major gamma level which will be an inflection point. News: Evergrande, China’s biggest property developer has fallen 23% on fears that it may default on debts of over $300B; IBM reported earnings that market seems to like; MCK, JNJ and CAH are expected to reach a settlement with govts on the Opioid case which is lifting the stocks; and NVDA is trading post split which could lead to a sell the news today

Stocks to Watch

Earnings ALLY DOV IBM SYF

Indices JETS ARKK XLE TAN IWM XLI XLF DIA GDX ARKG XLY IGV SMH FAANGM /BTC TLT KWEB EEM

S&P500 MCK ABC HCA IBM RCL HAL UHS F DAL APA MRO SLB OXY PPG VRTX FLIR NFLX PRGO PM LOW SHW

Movers MCK ABC CAH UBSCYTK HAL AMC UAL KEY ALLY MRNA GKOS INSP RKT SAP VRTX VLDR NFLX PM WHR ED

WSB MVIS WISH OCGN GME F IVR CRSR HOFV TLRY SNDL RBLX CLNE RKT RIOT

Stock Idea; BIGC

BIGC is a software as a service company that provides services for companies launching and scaling e-commerce operations. Catalyst today is a partnership with Mercado Libre.  Strong move Monday on a weak day.  BIGC is a longer-term idea that in the short term will depend on small-cap tech stocks recovering. SHOP is a larger name in the space which has been performing well.