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Swing Trade Idea – December 13, 2021

Market Setup

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

•Yield curve flatter with long yields lower, positive for growth stocks not for financials

•US dollar stronger relative to most currencies

•News: Meme that Omicron is less dangerous however concern that govts will restrict; Meme that China will stimulate and Pavlovian response to buy iron companies like BHP, VALE, RIO; PFE buying ARENA for $100 per share; BMY 10% div raise $16B buyback

•Stocks:  Added to Nasdaq 100: LCID DDOG ABNB ZS PANW FTNT; HOG spinning off EV and merging with IMPX SPAC;   

•Indices: USA indices are muted ahead of the FOMC Wed meeting led by Nasi. Nasi is supported by AAPL which continues to power higher. Risk-off setup with US dollar and long bonds strong which tends to favor large cap tech but range day expected with SPY +/-.6%

Sectors: Leading: natgas, biotech, TLT, technology, Silver, semis  Lagging: Brazil, emerging markets, energy, cannabis, airlines, small caps

•Stocks to watch: 

HOG ZS DDOG  AAPL QCOM FOXA CERN Spec Names: USER PAY TRQ AOSL

Movers

Earnings

Indices UNG /btc XBI GDX XLK SMH TLT QQQ TLT GLD EWZ EEM XLE JETS MSOS IYZ IWM

S&P500 FTNT NTAP BMY MU QCOM MRNA AAPL PLE KO FOXA CCL UAL SLB DAL CDW

Movers ARNA HOG CCO USER EDIT LCID MOLN BNTX SGMO NVAX DDOG XM FTNT PANW ZS BIGC BMY BABA

WSB FIGS DWAC SPCE NVDA CLF WIRE BABA

Trade Idea HOG

Harley is spinning out it’s EV business to a SPAC which they will own 75%. Premarket low is 40 and premarket high 42.43 which can be used for a momentum trade. 12% short float can provide some fuel for a move higher