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Swing Trade Idea – May 26, 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 and steeper – yields rose at 6:30ET financials positive reaction

•News: USA: GDP UE claims 830ET Home sales 10ET Canada: Retail Sales 830ET

•Stocks: NVDA –guidance $15B buyback; AAPL report that 2022 iphone units flat;  SNOW EPS miss; NTNX -37% miss; M DLTR DG WSM beat and raise; GES EPS miss;  BIDU BABA beat; MDT miss lower guidance; TWTR Elon reduced TSLA margin loan to zero – positive for TWTR and TSLA

•Indices: Moderately positive global set-up with USA indices rising since 5ET into the open. SPY below key 400 gamma level which serves as a breakout level with 395 gamma level support. QQQ above 290 gamma level which is support with 295 resistance and 285 lower support. VIX futures partially uninverted and < 30 which is supportive to equities. SPY 1.7% move based on volatility.  QQQ is the lagging index after NVDA report and AAPL news. Since 7ET, market has turned risk-on with high short interest names buying and can continue into the open which would bode well for IWM but some caution suggested.

•Stocks to watch DLTR BABA TSLA  AA NVDA AMD AAPL Spec Names: JOBY TWTR LNTH NTNX

Pre-800ET

Earnings CHNG DXC GES NTNX NVDA SNOW SPLK WSM ZTO BABA BIDU CM DG DLTR GLNG M MDT POLY TD

Indices XRT KWEB XLF IWM JETS XLY SPY ARKK XLE DIA /btc GLD GDX SLV TLT

S&P500 DG TWTR DLTR SYY AAL UAL NCLH DAL CCL NVDA MDT KHC AMD CNC HBAN

IWM M LNTH KTOS RH PBF PLAB ADC PUMP SAVA AMC SI

WSB BABA AMZN F NVDA AMD COIN MSTR AMC
Trade Idea: DLTR
DLTR trading higher on beat and raise. Premarket high 156.84 is momentum breakout level or alternative look for pullback to 149 which holds. Break below 149 can indicate that earnings pop is being sold and short could be considered