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Swing Trade Idea – September 17, 2021

Market View

•Global markets are mixed with USA red, Europe red, Japan green, China green, Hong Kong green, Asia mixed

•Yield curve steeper with long yields higher. Usually positive for financials and negative for tech

•US dollar  lower usually positive for equities

•News: China: CCB injected 14B in short term liquidity; Evergrande default expected for Monday, negative for Chinese bond market also iron ore forecasts lower; USA consumer sentiment to be released 10am EDT;

•Stocks: NTES opening Wechat to external sources; IVZ in merger talks with STT; INMD 2 for 1 split;

•USA indices pulled back overnight and currently bouncing but all USA indices are slightly negative with large caps outperforming

•SPX range into Sept OPEX 4400-4500 . Major gamma levels 4500, 4480, 4475 and 4450. 30% of SPX gamma expires at 9:30 and 60% of SPY and 35% of QQQ at the close. The SPX expiration at the open can lift the S&P into the open

•FAANGM stocks are flat to open and financials are tilting higher

•OPEX today will lead to volatility at the open and the close

Stocks to watch: BABA IVZ INMD FANG MTTR ASAN UPST ZI PLTR

Stocks to Watch

Indices KWEB GLD SLV GDX /BTC EEM TLT SPY DIA IWM SMH XLE XLK QQQ EWZ yen XLV

S&P500 IVZ FANG PWR SIVB KR O VTRS SNPS LIN BSX TTWO SNA WYNN DTE MRO ORLY LVS MRNA HAL

Movers ABCL AGEN IVZ MKTW BABA IHG CLOV GME FMS OPAD IRNT DCBO LIFE NOK CHX NVS NVAX FB TSLA PLTR

WSB ASTS ROOT GOEV ITUB CLOV OCGN AMC GSAT ANY NOK SENS ARVL UWMC

Stock Idea; PLTR

PLTR is a call option squeeze name. Very aggressive call buying the last 2 days and potential for continuation Friday Sept 17. There is high open interest and volume in the 28, 29 and 30 strikes. There is the potential for a squeeze higher with the caveat that if price stalls, PLTR can pull back sharply. Must be handled with care.