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Swing Trade Idea – July 23, 2021

Market View

World markets are mixed with USA green, Europe green, Japan green, Hong Kong red, China red and Asia mixed.  Yield curve is steeper premarket which is boosting the financial stocks and small caps. US dollar is  stronger and coupled with yields rising is negative for gold and silver.  USA indices are being led by small caps but the strongest industry groups are social media stocks and financials. Earnings were generally positive with SNAP TWTR SKX AXP strong premarket and SNAP in particular standing out. FB and GOOGL are leading FAANGM, both with upgrades and FB moving in sympathy with SNAP/TWTR. INTC is trading down post earnings after saying the chip shortage may last at least 1 year. China stocks are sharply down after a report that the government wants the education companies to become non-profits. Directly affected is TAL, EDU and GOTU but all China companies are impacted. Following the action on DIDI, investors should be wary of government actions affecting USA listed Chinese stocks. I am expecting a slow grind up in the S&P500 to start the day with acceleration as options expire and a bump after 3pm into the close.

Stocks to Watch

Earnings AXP CE HON  INTC KMB SAM SKX SLB SNAP TWTR VRSN

Indices FDN FAANGMT IWM XLF XLE IGV DIA JETS KWEB TLT EEM SLV GDX GLD ICLN

S&P500 TWTR AXP RHI FB CE SLB GOOGL EW AAL RF ABMD KMB VRSN INTC FLIR COF CERN DPZ TSLA NEM HON COP

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

WSB OCGN UWMC AMC CLF TTCF GE BA NOK MVIS CRSR NIO CLOV GSAT SPCE SOFI TSLA WISH CLNE 

Stock Idea; SNAP

SNAP is in play today after earnings beat and raise. Analysts are chasing with upgrades from 81-110. Stock is stretched with premarket high 74.4. This is a candidate for a runaway move. One can look for a momentum breakout above the premarket high or on a dip to VWAP. Caveat is there can be a sell the rip today.  TWTR, PINS, FB are other names in play.