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Swing Trade Idea – May 18, 2022

Market Setup pre-800ET

•Global Markets:  USA, Europe, Japan, China, Hong Kong Asia – Bearish  global set-up

•Commodities:  Gold, Silver, Oil and natgas, Grains, industrial metals (aluminum, copper, nickel palladium, zinc)

•Yields: Yields higher and steeper

•News: USA: Housing starts 830ET; Europe: Final CPI 7.4% Y-Y Canada: CPI 830ET; FED Powell “Truthfully, this is not a time for tremendously nuanced readings of inflation. We need to see inflation coming down in a convincing way. That is what we need to see. Until we see that, we are going to keep going.“

•Stocks: TGT -22%  EPS miss Rev beat, margin -;  LOW -2%  Rev miss; DOCS -13% -guidance; DT +7% beat; ADI +2% beat; ZIM massive beat; TJX +3%  EPS beat Rev miss; Retail names weak: BBY JWN WSM DG BBWI LOW OLLI

•Indices: Global equity weakness with US$ and Yen signaling risk-off but bonds not confirming. SPY 405 key gamma level holding. QQQ between 305 and key 300 levels. Tue’s move was driven by market flows into Opex which will be weakening into Friday. VIX futures are no longer inverted is supportive for markets. SPY 1.7% move based on volatility.  

•Stocks to watch: TJX ADI WDC MNST ZIM SBLK LOW TGT Spec Names: DOCS M

Pre-800ET

Earnings DLO DOCS KEYS ADI DT TGT TJX LOW

Indices XOP XLE euro DBC ICLN XLY XHB XBI ARKK KWEB faangmt QQQ SMH

S&P500 PENN ADI MNST CTRA TGT LOW BBY DG DLTR TJX KR COST CARR BBWI AMZN RL WMT HD VFC WBA

IWM PENN VERU INT M CENX BJ AEO NVAX SAVE GME URBN CHK APPS OSTK LTHM

WSB PLUG AMC AFRM NIO GME AMZN BABA RBLX COIN TSLA AMD NVDA

Trade Idea: MNST
MNST is a leader in the beverage space poised to breakout over the 90 level. Bernstein upgraded with 110 target and trading premarket 90.5. Safety trade long idea for a weak market if PMs rotate into consumables.