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Swing Trade Idea – January 25, 2022

Market Setup 

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

•Yields higher from Mon close but rising in the premarket

•US dollar higher in premarket

•News: Twin memes of Fed meeting Wed and Russia/Ukraine USA: Business Confidence 10ET; German business confidence higher

•Stocks: AJRD said sale to LMT likely to be blocked by FTC; ERIC beat and dividend raise; AXP beat, dividend raise, soft guidance; IBM beat Cloud +6%;  NVDA reportedly preparing to drop deal to buy ARM due to regulators; . MSFT, TXN earnings after the close

•Indices: USA indices very weak with Nasdaq leading to the downside; however more than 50% of the gap up has held.  Gamma levels: Resistance 4405, 4453 Support 4356, 4308.  SPX 4300 is a critical pivot level. VIX futures inverted and Vix > 30 is a red alert signal where high volatility is expected.

•Sectors: Leading: US dollar, GLD, AGG Lagging:  Spec tech, semiconductors, software, China Internet, faangmt

Stocks to watch: NKE ERIC TSLA NVDA AAPL GE Spec Names: HOOD AMC

Movers

Earnings BRO IBM ADM AXP CTXS ERIC GE IVZ JNJ LMT MMM NEE PCAR

Indices UUP GLD TLT Yen XLP ARK SMH SOXX MSOS XLK QQQ IGV IPO XLY JETS faangmt XBI

S&P500 IBM MMM IVZ AXP NKE SO VZ NVDA TSLA GE PENN KR AMAT RTX PYPL AAL TWTR AAPL F AMZN NFLX

Movers TRQ MDRX ERIC LOGI BNTX IBM MMMIVZ NKE AJRD BILL AMC HOOD NVDA GME SHOP SQ WISH TSLA RTX

WSB AMC HOOD RIVN GME SOFI NVDA PLUG AFRM PLUG RBLX

Trade Idea GLD

GLD is consolidating in a small flag. Premarket gold is moving higher with GC 1841. Breakout GC level is 1844. Gold may breakout if US dollar pulls back or market worries increase.