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Swing Trade Idea – December 16, 2021

Market Setup

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

•Yield curve steeper with long yields higher, positive for financials and small caps

•US dollar weaker relative to major currencies

•News: UK: BOE raised rates by 15 basis points; Europe: ECB tapering bond purchases; USA: Accelerated taper and rate increase signaled which is hawkish but not worse than expected and flexibility indicated.

•Stocks: ACN beat and raise; LEN revenue miss;  ADBE revenue miss and lower guidance –  weakness in ADBE will affect other cloud/software companies;  JBL beat; NVS $15B buyback; DAL forecast profitability in 2022

•Indices: USA indices surged overnight and are pulling back in the premarket. The markets are being led by the most oversold – high and negative PE growth stocks and hence the IWM is outperforming. SPX key levels are 4700, 4725, 4750 will act as support and resistance

•Sectors: Leading: natgas Lagging: China Internet, emerging markets

•Stocks to watch: 

CAN NVDA AMD ADBE LEN Spec Names: VIR ARKK

Movers

Earnings LEN TCOM ACN ADBE JBL

Indices UNG ARKK ARKF JETS EWZ KWEB ARKQ IWM ICLN TAN ITB /BTC TLT HYG

S&P500 ACN ENPH TSLA ETSY FCX PENN NVDA DAL NUE F PYPL MOS LVS T GNRC LEN ADBE WU WBA PCAR CTXS UAA DHI

Movers ACN ARVL PLUG AMC YNDX NVS XM CRNC TWLO SOFI NIO TSLA SHOP GME NVDA DNMR LEN  ADBE W CTXS

WSB AMC PLUG NET RBLX SOFI NIO TSLA CCJ AFRM GME NVDA TTCF RIOT PLTR ASO F CLF WOOF

Trade Idea DAL

DAL is in play today with the market favoring beaten-up stocks and DAL forecasting profitability in 2022. Premarket 38.76 can be used for a momentum long or look for a pullback. Market in general overbought so best to wait for the market to settle