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Swing Trade Idea – February 01, 2022

Market Setup 

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

•Yields lower and curve flatter, negative for financials

•US dollar lower, positive for commodities

•News: USA ISM mfg PMI, Jolts 10ET; Europe Mfg PMI lower; German retail sales -5.5% vs -1.4%

•Stocks: T div cut with WarnerMedia sell; AMC prelim sales +7%; SI buying blockchain payment company; UPS beat and raise;

•Indices: USA indices are mixed with QQQ green and other red. Similar to Monday growth is outperforming value and beaten down tech names are strong. USA indices are approaching top of expected move for week and combined with drop in volatility and short covering, indices will likely slow down. SPY levels to watch: Resistance: 452 top of expected move, 451.39 20sma, 462.09 50sma Support/Pivot 475.5

•Sectors: Leading: Precious metals,  Lithium, Semiconductors, Long Bond Lagging financials, oil producers, small caps, junk bonds

Stocks to watch: UPS FDX AMD NVDA SQ T Spec Names: AMC SI ARKK  HOOD

Movers

Earnings CRUS CTLT EPD LII MAN NXPI PNR PHM POWW ST beat UPS XOM

Indices SLV GDX LIT SOXX TLT SMH ARKK XME EWZ XLF XOP IWM HYG XRT

S&P500 UPS MRNA AMD NVDA FDX XLNX ALB FCX NEM T

Movers AMC SI UPS ARCB UBS OZON PLTR GME BNTX AU KMPR CRUS T PCG IONS DISCA

WSB AMC AMD NVDA PLTR PLUG CLF GME HOOD

Trade Idea ARKK

ARKK holds a basket of the beaten down tech stocks that are in a squeeze. Move off the bottom has been swift so care required. Premarket high is 76.7.  High call OI @ 78, 80.5 can act as resistance.