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Swing Trade Idea – July 21, 2021

Market View

World markets are mixed with USA mixed, Europe green, Japan green, Hong Kong red, China red and Asia red. Yield curve steeper with long yields rising is usually positive for financials and small caps and negative for large cap tech, which is the premarket setup. US dollar continues to rise.  USA markets are being led by small caps that are up strongly in the premarket with the large cap S&P500 slightly positive and the Nasdaq slightly red.  Strongest sectors are energy, travel and small caps, basically the most oversold sectors and in the case of small caps, heavily shorted. News: NFLX down post earnings on lower subscriber adds; KO, JNJ, CMG, UAL and others reporting good earnings providing a positive mood for markets. S&P500 has moved to 4300, which is a key gamma level and above that level expect less volatility. The 10yr yield will be key to watch today as higher yields are positive for small caps and financials but negative for the FAANGMT stocks.

Stocks to Watch

Earnings ANTM ASML CMG HOG JNJ KO LAD NDAQ NFLX NVS RCI SAP STX

Indices XLE XLF IWM JETS SLV ICLN XLB XLP DIA XLV XLI SMH EEM TLT GLD KWEB GDX HACK QQQ EWZ FANG

S&P500 CMG HAL ISRG BKR IPG ALB PRU KO CCL NCLH DVN SLB FLIR NFLX ETSY ALLE TSLA AAPL

Movers MARA RIOT CAN LIT LTHM LAC ASML JKS ALB BKR COIN EA KO CHPT SAP AMC SPCE ATHM NFLX

WSB RIOT SNDL UWMC CRSR F CLNE CLOV CLF BB GME SPCE AMC 

Stock Idea; XM

Qualtrics International Inc. provides an experience management platform for organizations to design, manage, and improve customer, employee, product, and brand experiences of businesses. Catalyst for a long move is an earnings report where earnings beat and were positive versus a loss and forecast was raised. In addition, 2 analysts have raised forecasts. Short interest is 8% which can also provide a moderate boost. Would look for a pullback for an entry. Stock is not a fast mover so this is a swing trade candidate.