Swing Trade Idea – September 28, 2021
Market View
•Global markets are red with USA red, Japan red, Europe red, Hong Kong green, China green and Asia red.
•Yield curve steeper with the 10yr yield rising
•US dollar higher which is negative for equities and commodities
•News: USA politicians debating debt ceiling raise, 1T infrastructure and 3.5 social spending; China power shortage affecting industrial activity, coal shortage driving up prices, GS and MS cutting China growth forecasts; Eurozone energy prices hitting new record; Powell speaking to Congress – inflation control, debt ceiling and Fed governors quitting will be on the agenda
•Stocks: F announces 4 factories to mfg Evs and batteries; Spike in yields is weighing on growth stocks. Semiconductors are being hit hard, perhaps due to China growth. High growth tech in general is weak due to rates. Iron ore companies are weak perhaps due to China.
•Indices: S&P500 key level is 4400 as below that level dealers will be selling into a decline. 4450 is resistance based on market positioning. QQQ is trading in Monday’s range with 364 a key level to watch. IWM is outperforming with a small decline suggesting the weakness is confined and not broad-based. Keep an open mind today for further breakdown today or a reflexive bounce. News from Washington can cause spikes.
•Stocks to watch: GOGO F CCJ TSLA NVDA MRNA
Stocks to Watch
Earnings FDS GOGO UNFI THO
Indices XLE DBC XLF KIE /BTC GDX SMH ARKK XLK SLV faangmt ARKF QQQ IGV IPO
S&P500 F COG OXY MRO FANG DVN AMAT MRNA NVDA MCCHP LRCX QRVO NXPI REGN FCX PYPL QCOM
Movers EDR HUN LILM UNG GOGO F THO CVE BABA TTE HP LOGI AMAT PLTR MCHP AMC TNL GOEV ABB CLF AVGO
WSB F CCJ PAYA HOFV ANY NET NVDA PLTR SNDL OCGN AFRM AMC PLUG HUT AMD AMZN
Stock Idea; CCJ
Uranium is one of the strongest commodity sectors. Electricity shortages and the desire to avoid carbon is bringing life to Uranium. Cameco is the largest miner and the premarket is strong. Can benefit from commodities rising in general and Uranium in particular. Sprott Uranium trust is a pure way to the play as an alternative. CCJ is extended in premarket so look for a pullback.
