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Swing Trade Idea – August 5, 2021

Market View

World markets are mixed with USA green, Europe green, Japan green, Hong Kong red, China red and Asia red. Yield curve flatter with long yields lower. US dollar lower but commodities mixed. USA indices are slightly positive with no clear bias but with a lower 10yr yield, the algos will normally lean on large cap tech. NVDA and TSLA are leading in the large cap tech space. NVDA has earnings Aug18 so look for a run into earnings. TSLA is the outperforming stock in the mega cap club and is a favorite of option buyers and doesn’t trade on fundamentals.  News: China increasing restrictions due to Covid Delta (500 cases); Hood filed to sell 97.9M shares which has hit the stock; Earnings winner DDOG and losers FSLY, ETSY and ROKU; USA initial claims slightly higher than expect, likely a nothing burger. S&P500 support 4375, resistance 4425 and 4400 a major gamma level that should keep the index in a range. Hedging is high into Jackson Hole which can prevent major moves down. Implied move today is 0.82%

Stocks to Watch

Earnings DDOG PBR W EA WYNN WU ALB MFC APA FSLY ETSY RVLV LMND ROKU MRNA CAH DXC WDC

Indices EWZ GDX SLV XLB XLF QQQ SPY IWM XLE /BTC KWEB ARKK EEM

S&P500 EA WU ERGN HBI WYNN BKNG F BLL GM LVS QRVO ALB ETSY CAH CI BDX APTV

Movers DDOG PING MVIS PBR KLIC HIMX ELF W SRPT EA NVRO FSLY FVRR ETSY MAXR RVLV HOOD AMED ACAD MRNA

WSB MVIS F TLRY NVDA TSLA SPCE SOFI AMD AMC 

Stock Idea; NVDA

NVDA is today’s idea. Option flow is high, it has been upgraded to $250 and a lower 10yr yield will tilt markets towards mega tech. As usual look for an opening pullback. Earnings Aug 18 so look for the algos to run it up into earnings with some bumps along the way.