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Swing Trade Idea – March 07, 2022

Market Outlook: Equities experienced a slow down in momentum last week with both the SPY and QQQ failing to continue the rebound experienced from the previous week. However, SPY remains above the key $428 support level after an intraday bounce which does provide some optimism for an eventual move higher. Short term price direction continues to be dictated by the ongoing Ukraine situation which is aiding to the high levels of volatility as well as uncertainty. Investors should remain nimble in their positions and be ready to get out of trades based on developments in Ukraine. Equities did find some momentum after the Fed’s decision to decelerate the rate hike process slightly, however, should inflation not decline as expected, rates are expected to hike at a much faster rate. 

CMCSA Bearish Idea: Our bearish trade idea for today is CMCSA. CMCSA is part of the Communications sector that has experienced a long-term underperformance relative to the overall market. CMCSA has been on a strong bearish trend since September 2021 and price has recently retraced higher to provide an excellent bearish entry with the expectation that price continues to form a new lower low. Both 1M and 6M trends are bearish and with a Technical Score of 3 (out of 10), CMCSA is a weak stock that will likely move lower.