Swing Trade Idea – August 16, 2021
Market View
World markets are red with USA red, Europe red, Japan red, Hong Kong red, China A green, and Asia red. Yield curve is flatter, US dollar & Yen and Swiss Franc all higher point to a risk-off world market. News: China industrial production and retail sales well below estimates (but still positive); China crude throughput fell to lowest since May 2020; Afghanistan fell to Taliban after USA govt decided to remove troops; NHTSA investigating TSLA autopilot crashes and SONO won a patent case with GOOGL. This week is monthly options expiration and 20% of gamma expired last week. With implied volatility very low, the rise in IV today is not unexpected. S&P500 closed Friday 2 standard deviations above value and bounced off the top of value in premarket trading. Key level to watch is 4440, which is the 2 week top of value. Below, 4438, 4430, 4412 and 4400 are support levels. There is the potential for a trend day down with both FANG and financials lower however as long as S&P is above 4400 flows support bounces. The China slowdown and ongoing Covid concerns usually lead to algos to shift money into FANG and away from cyclicals. Stocks not in the major indices can move independent of the larger market. Bitcoin names like RIOT, MSTR, BTBT, NCTY are all up with DPW leading after earnings.
Stocks to Watch
Earnings BHP CVAC OTLY PSFE
Indices /BTC Yen KWEB SLV JETS EEM XLE EWZ IWM GDX XME XLF XLB ARKK ICLN
S&P500 STX LUMN LIN KHC REGN CLX CCL NCLH FCX FTI UAL DAL ALB AAL MRO SLB
Movers SONO NIU PYCR ZH PAAS NIO JELD PFSE BHP MRO OXY PFE APA TECK GOLD HES NVDA
WSB RIOT TTCF ARVL AMC NIO RKT CLF TLRY F BA MVIS
Stock Idea; FIGS
FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States. It designs and sells healthcare apparel and other non-scrub offerings.
Recent IPO, that reported positive earnings with negative expectations. Premarket trading at 42.79 with 43.70 the premarket high.
Look for a pullback that holds or use 43.70 as a momentum breakout level. Speculative stock; however can move independent of the major indices.
