Swing Trade Idea – May 05, 2022
Market Setup pre-800ET
•Global Markets: USA, Europe, Japan, China, Hong Kong Asia – Mixed global set-up
•Commodities: Gold, Silver, Oil and natgas, Grains, industrial metals (aluminum, copper, nickel palladium, zinc)
•Yields: Yields higher curve steeper
•News: USA: UE claims 830ET ; Europe: German factory orders -4.7% vs -1%, French Ind Prod -0.5% vs -0.2% China: Caixin Services 36.2 vs 40.1; Covid breakouts little sign of improving BOE rate raise +25 bps to 1%; Brazil CB raised 100 bps; SEC added JD PDD BILI to list of companies at risk of delisting; OPEC meeting
•Stocks: ALB beat; SHOP big miss; Run beat; ETSY miss; BKNG beat; MGPI beat; CAH miss; DOCN, W, FSLY, EBAY miss; CROX beat; SFM guidance cut – consumers cutting back, signal for other grocers; K small beat; `PENN EPS beat; SIMO being bought by MXL
•Indices: USA consolidating after Wed post FOMC short rally with SPY between 425 and 430 gamma levels. Short squeeze is expected to have less momentum than March post FOMC as majority of put options do not expire until May20 and June. Look for acceleration or bounces at the gamma levels. VIX futures are no longer fully inverted which is an improvement. 1.6% move based on volatility
•Stocks to watch ALB BKNG RUN OXY DVN SHOP ETSY W FSLY Spec Names: LAC MGPI
Pre-800ET
Earnings ALB APA CTSH DOCN EBAY ET ETSY FSLY FSR FTNT GXO MARA BCRX CAH CCJ CROX DDOG EPAM HBI LAC
Indices LIT GLD GDX KWEB ARKK EEM /btc EFA yen SSOXX XLK faangmt QQQ JETS
S&P500 ALB BKNG FTNT EPAM ZTS TWTR BDX WRK OXY ETSY EBAY CAH QRVO MRO APA MRNA CCL INTC PYPL CTSH
Movers RUN BKNG WCC COMM FTNT NVST TWLO SFM VMEO ETSY WOLF QRVO VYGR SE BEKE DQ FSR STLA SAVE MT
WSB CCJ NIO BABA RIVN PLUG NVDA AFRM TSLA RBLX AMD F
Trade Idea: FTNT
FTNT is a security stock which reported EPS better than expected and raised guidance. WFC raised target to $400 and Mizuho to $350. Premarket high 309. Note tech out of favor but security has strong macro support. PANW is another name to look at as it has corrected.
