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Swing Trade Idea – October 18, 2021

Market Setup

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

•Yield curve steeper in premarket which can be negative for tech

•US dollar higher is negative for equities and commodities

•News: China GDP growth and industrial production lower than expectation; High nat gas in Europe as Russia did not increase supplied

•Stocks: BIDU higher as China debates allowing articles on WeChat available to search engines; Bitcoin stocks in play as launch of Bitcoin ETF planned for Tues; DVAX vaccine candidate met primary endpoints; DIS, NTAP, SPCE downgrade; NFLX and TSLA earnings this week; VEDL

•Indices: US indices closed the week extended and are pulling back as expected. Post Opex is usually more volatile. SPX 4400 is an important level to hold as with Friday expiration there is less support below.

•Sectors: Commodities are leading and momo tech is lagging. FAANGMT are mixed. FB NFLX and TSLA are leaders.

•Stocks to watch: TSLA NFLX FB BIDU CCJ AR VEDL

Stocks to Watch

Earnings ACI STT

Indices XLE DBC BLOK TLT XLF TAN /btc IWM SMH GDX ICLN EEM GLD XLI IBB SLV

S&P500 OXY ICE MRO HST WRK HES APA TSLA FB KMI MLM NFLX  MDT NTAP DIS CTVA ED DOW MRNA BIIB XEL EL

Movers DVAX ACI RELY TTE TM FRSH STT HAL NOK NFLX TOST LVS RVNC Z PHG DIS IQ ST UTHR

WSB CCJ TSLA TTCF RIOT ARVL HUT SPCE

Stock Idea; NFLX

NFLX is a pre-earnings idea with earnings to be released Oct18 AMC. Today UBS has raised the target to $720. Premarket high 633.5. 640 and 645 are short term targets. 650 is a daily breakout level. Look for dips for a day trade