Swing Trade Idea – October 27, 2022
Color Key: Positive – Neutral – Negative
Market Setup- Pre 830ET Pre GDP and Pre ECB Rate Move
•Global Markets: USA, Europe, Japan, China, Hong Kong Asia –Bearish/Neutral global set-up
•Commodities: Gold, Silver, Oil and natgas, Grains, Industrial Metals
•Yields: Yields higher
•US$ +.33% Euro -.35%
•News: USA: GDP 830ET 2.3%Q/Q expected, Durable Goods, UE claims Europe: Monetary statement 815 Press Conf 845
• Stocks: META -22% Metaverse spending ++, Earnings up: NOW SHOP CMCSA CAT MCD HON Earnings Down: TECK SWK FISV F IP
•General: Leading: energy, telecom, DJIA, ARKK, Lagging: China Internet, bitcoin, EEM, bonds
•Indices: USA indices are mixed premarket with DJIA leading and Nasdaq lagging ahead of ECB rate and USA GDP announcements. US$ and yields are currently higher which is weighing on the markets. The weaker GDP and hawkish ECB can lift stocks and the converse can lead to selling. SPY 381.4 is above 380 major gamma level with 380, 375, 372.5 support and 385 resistance. VIX 27.5 implies a 1.8% daily move. VIX futures are no longer inverted which is positive if it holds today. Short squeezes have occurred the last 2 days and potential today – watch ARKK and IWM for signal. SPY 380 is a bull/bear line. GDP will be a major catalyst to set direction with the market looking for any reason to buy.
•Stocks to watch NOW SHOP TSLA NVDA MCD CAT AAPL META Spec Names ANET
Pre-800ET
Earnings NOW SHOP CMCSA BUD SHEL CAT LUV HON CCJ FLEX MCD CARR MA WOLF META STM SWK TECK FISV F IP VFC
Indices XLE IYZ DIA ARKK XOP JETS XBI IWM UUP KWEB /btc EEM TLT ICLN QQQ EFA euro
S&P500 NOW ANET CMCSA HON CAT LUV NVDA MCD AMD MRNA BA MRO OXY CRM META ALGN WST SWK NOC F
IWM PBF PTEN DAN ARCH THC LC OSTK
WSB NVDA CCJ AMD NLY BA TSLA BABA NIO F
Trade Idea: CAT
CAT is trading higher post earnings and breaking out on the weekly chart. Premarket high 207.7 can be used for a momentum long or look for a pullback > 200. Target 214. Industrials and value stocks are outperforming tech growth
