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Swing Trade Idea – January 31, 2022

Market Setup 

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

•Yields steeper and slightly higher, usually negative for tech

•US dollar lower, positive for commodities

•News: JPN Ind Production lower m-m, Retail Sales 1.4% vs 2.9%; Europe: CPI higher m-m, GDP .3% vs 0.4%

•Stocks:  CTXS report that buyout price below Fri close; SPOT Rogan controversy; ATKR beat; IONS trial discontinued; NFLX CEO, Ackman buy and upgrade; BB selling legacy patents

•Indices: USA indices have pulled back in the premarket with Nasdaq the strongest and R2K the weakest. Set-up premarket is for growth to outperform value; however yields are rising rapidly and which is negative for tech. Index gamma levels are negative and VIX term structure is inverted making risk high. 440 is a key SPY pivot level to watch today. Gamma levels: Resistance 445 Support 440 438 435. 

•Sectors: Leading: Cannabis,  Emerging Markets, Spec tech, semiconductors  Lagging bitcoin, small caps, long bonds, materials, financials

Stocks to watch: NFLX SPOT TSLA JD OTIS IONS  Spec Names: HTZ ATKR HOOD

Movers

Earnings ATKR HAYW LHX OTIS TT TTM

Indices MSOS SLV EEM GDX ARKK LIT /btc IWM XHB XLF XLI XRT ITB XLB DIA XLP

S&P500 RMD NFLX MCHP TSLA ALGN AMD CTXS LHX PBCT OTIS LIN K MS PNW HSIC WYNN CVX JPM O MRNA

Movers ATKR BYND WB NVAX QFIN GFI JD ESLT YNDX NFLX MCHP SONY SPOT IONS WOLF HOOD LHX RRC RIO AZN

WSB SPOT BABA NIO PLUG TSLA AMD HOOD AMC BA F GME CLF

Trade Idea NFLX

NFLX is in play with CEO $20M buy, Ackman position and CITI $450 target raise. Premarket high 398.50. 400 is a high call open interest level so one can trade a pullback to 400 or trade breakout above 400.