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Swing Trade Idea – December 21, 2021

Market Setup

• Global markets are strong with global indices positive

• Yields higher and steeper – usually positive for financials, small caps and cyclicals

• US dollar lower relative to Euro and commodity currencies

• Commodities mixed with strength in oil, copper and palladium

• News: USA: Build Back Better Plan pushed to 2022;  Europe: Power prices popping on nat gas shortage, renewable power lower leading to oil generators turned on; Commentary from MU and NKE were positive for supply chain

• Stocks: MU earnings beat and raise GS target 101; NKE earnings beat;  CTXS bid from Elliot mgmt.; ERJ – eVTOL unit going public via merger with SPAC ZNTE; BRZE earnings; GIS earnings miss due to higher input costs , RAD revenue miss, forecast lower; NEGG partnership with AFRM; BHC cramer bump

• Indices: USA indices are being led by small caps and Nasdaq100 with breadth broad. Semis and NVDA in particular are very strong due to MU report.  Indices are extended and at resistance in the premarket so be prepared for a pullback. SPY > 460 key bullish level

• Sectors: Leading: bitcoin, China Internet, Silver, semiconductors, spec tech, small caps  Lagging: TLT

• Stocks to watch:  MU NVDA AMD CTXS SOXX ARKK GIS Spec Names: BRZE HUT

• Earnings BRZE GIS NKE MU

• Indices /btc KWEB SLV BLOK ARKK TAN ICLN ARKF GDX IWM JETS XLE XLF EWZ TLT

• S&P500 MU CTXS KLAC NKE WDC NVDA ENPH CCL TPR DVN AMAT LRCX AMD PFE URI GIS

• Movers ERJ BRZE MU NKE KLAC NVDA ARGX VIR GIS URI

• WSB HUT RIOT NVDA GOEV PLUG BB NET AMD SOFI

Trade Idea MU

Micron reported after reporting better than expected earnings and raised guidance. Analyst price targets raised to 101 GS, 130 CS. Premarket trading 89 which can be used for a momentum trade. Expect a pullback on the open with 87.5 a key level to hold.