.

Swing Trade Idea – October 17, 2022

Color Key: Positive – Negative –Neutral

Market Setup- Pre 830ET

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

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

•Yields: Yields lower

•US$ -.36% EUR +.27% YEN -.05% GBP +1.19%

•News: USA: Empire Mfg 830ET UK: Backing away from tax cuts and energy subsidy – dropping rates Europe: Cunning plan to cap nat gas prices China: Planning to not change Covid policy; Delaying GDP data;

•Stocks:  BK +4% BAC positive earnings reactions SPLK +10% Starboard CLR Hamm buying for $74.25/share; NET +4.9% upgrade

•General: Leading: China, ARK, Gold Miners, bitcoin, Brazil, Tech Lagging: Energy, Low volatility

•Indices: Global markets are rising premarket with US$ and yield lower. UK potential reversal in the budget calming bond market and strengthening the pound. SPY 361.6  is above 360 major gamma level with 365 and 370 resistance above and support at 360 and 355, 350 gamma levels. VIX 31.5  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. The market is positioned for a short squeeze and SPX gamma squeeze > 3625. NFLX and TSLA in play with earnings this week. Bank stocks may continue to run with BAC and BK higher. A short squeeze can be traded with ARKK, IWM, and bitcoin. Lower US$ can be traded through precious metal miners. The caveat is stocks are elevated premarket and can retreat on open but SPY 360 should hold to remain bullish.

•Stocks to watch  BAC BABA TSLA NFLX AAPL AMZN  Spec Names NET RIOT HL 

Pre-800ET

Earnings BAC  BK SCHW

Indices KWEB GDX ARKF ARKK IWM /btc EEM XLB FDN  LIT SMH

S&P500 BAC AMZN BAC PYPL NFLX META BA GOOG TSLA NVDA MSFT OXY INTC AAPL MRO DVN

IWM APPS SPWR FRO GME PLUG CLF NVAX

WSB NET AFRM NIO GME NIO MSTR COIN PLUG UPST BABA RIVN TSLA AMZN BA CCJ NVDA CLF NLY

Trade Idea: IWM
IWM will benefit if the markets squeeze higher but a straddle approach is an idea. IWM premarket 169.33 with long > 170 and target 172 and 175. Below 169 target 167 and 165.