.

Swing Trade Idea – October 12, 2022

Color Key: Positive – Negative – Neutral

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

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

•Yields: Yields higher

•US$ +.04% EUR -.04% YEN -.55% GBP +.27%

•News: USA: PPI 830ET FOMC Minutes 14ET Europe: Industrial production +1.5% vs .6% Japan: Machinery orders -5.8% vs -2.7%

•Stocks:  PEP +2.9%  Beat and raise; CCJ -13% $650M share offer at $21.65 Westinghouse acq with BEP;  KNBE +12.8% acq by Vista

•General: Leading: Spec Tech, China, Energy, Semis Lagging: Bonds

•Indices: Global markets rising premarket in advance of PPI data premarket after a sharp drop Tues. on BOE plan to stop bond purchases Friday. SPY 360  is at a major gamma level with 361, 363, and 365 resistance above and support at 359 premarket low and 355, 350 gamma levels. VIX 32.3  implies a 2% daily move. VIX futures are inverted which is a warning flag today.  Markets are in negative gamma which can lead to larger than expected moves. Markets are positioned for a short squeeze but will depend on PPI data. If the squeeze continues, tech both large cap and small cap may outperform. Markets are trading with currencies and yields so bulls need US$ and yields to fall. FOMC minutes 14ET may be market moving.

Stocks to watch  PEP BABA  SPWR  TSLA  AAPL APA  CCJ TLT Spec Names HKD

Pre-800ET

Earnings PEP

Indices ARKK KWEB XLE QQQ SOXX XOP /btc SMH IWM XLK SPY XLB FAANG MT TLT

S&P500 NCLH PEP AIG MRNA NFLX TSLA CME SEDG APA PYPL  HWM

IWM SPWR NVAX PLUG RUN GME GDYN OSTK OMI CNK NVRO

WSB NIO BABA AFRM RIVN PLUG GME AMD TSLA NVDA F COIN CCJ

Trade Idea: IARKK
ARKK is a high beta way to trade PPI reaction. Long trigger > 36.5 and fade below  35.2.  Tues low 34.6 is a reference level for an intraday bounce.  Potential for a bounce on short covering if the market pulls back on PPI data.