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Swing Trade Ideas – April 16, 2020

Market View

USA and world markets are mixed pending the release of the USA unemployment report.  USA indices are slightly up, Europe is positive but Japan and China are negative. Yields are lower with the curve flatter which is negative. USD is higher, which is also negative. The tech sector is the strongest in the premarket with semiconductor stocks positive after TSM positive earnings report.  If the unemployment report is considered good, this sector will likely be strong. MS missed earnings and provided a cautious outlook which may continue to pressure the financial sector. On a positive note the virus meme has shifted to the return to work narrative. 

Stock Idea: Work

Slack is a cloud based software company that provides an application for teams to communicate and share data.  It is one of the companies getting attention with employees working at home under quarantine. Slack is a recent IPO company that currently is below the IPO price and not profitable. The stock is consolidating and setting up for a potential breakout. The price action Wed was constructive and is continuing in the premarket.  The AccDist indicates accumulation and relative strength is increasing. Daytraders can watch the price action on the open. Swing traders can watch the 30 level, which could indicate a breakout above a large volume by price level. Note that the market should be supportive post the employment report to consider long swings.