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Swing Trade Idea – August 15, 2022

Market Setup:

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

•Commodities:  Gold, Silver, Oil and natgas, Grains, Industrial Metals

•Yields: Yields lower

•US$ +.58% EUR -.69% JPY +.27% GBP -.46% CAD -1.1%

•News: USA: Empire State 830ET China: Retail Sales 2.7% vs 5%; Industrial Production y/y 3.8% vs 4.5% Rate Cuts  Japan GDP q/q .5% vs .7%

•Stocks: LI -5.7% deliveries -10% reduced outlook; U rejects APP bid IS 13%; Energy, metals all hit on China news

•General: Leading: Clean Energy, TLT Lagging: Energy, Commodities, Emerging Markets

•Indices: USA markets pulling back from overbought along with global equity on China news. Classic risk-off set-up with US$, YEN and bonds higher. SPY at 425 gamma level with support 420, 415, 410,  and resistance  430  QQQ at 330 gamma level  with  325, 320 support and 335 resistance.  Indices are statistically stretched and susceptible to pullback however continuation higher should buying continue.  SPY premarket low 424.3 is a level to watch with target 420. Common for first move to be up on a down day but watch for reversal. Short squeeze is continuing  but with less participation in premarket.

•Stocks to watch  TSLA FCX AA NIO BABA Spec Names DNA BBBY PLUG

Pre-800ET

Earnings BHP LI

Indices ICLN TLT TAN XLE XOP GDX GLD DBC XME BLOK XLB EFA EEM EWZ

S&P500 TSLA PPL FANG FCX MRO APA SLB MOS DE LUV DG BAC

IWM PLUG BE RUN OVV AA AR MTDR SM MGY RRC X AMC T M

WSB PLUG TSLA NIO GME CLF BABA AMC CCJ HOOD

Trade Idea: WMT
WMT is reporting earnings this week and a member of the staples sector. Idea is a potential run into earnings and/or a rotation into lower beta with the market weak. Premarket high 132.5 can be used as a trigger. TGT is another name. Note retail sales Wed so this is a short term idea.