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Swing Trade Ideas – April 27, 2020

Market View

Ahead of the open markets are higher around the world. Rational- world economies starting to open up or BOJ unlimited bond buying or European stimulus or short squeeze, take your pick. S&P is tightly wound over last 2 weeks and larger moves are expected. SPX 2850 is a high gamma level and may act as a magnet. Macro factors are aligned bullish with exception of oil so likely a buy the dip day. Would expect some caution into major earnings and Fed this week but anything can happen.

Premarket names:

Travel and leisure names, small caps are strong. On a bounce day the weakest names can bounce the most. CGC/TLRY &  UBER/LYFT or MGM/WYNN/LVS or PINS/TWTR  are some names to watch. Basically high short interest names can move.

Stock Idea: CGC

CGC is the largest Cannabis company and has been consolidating after a sharp drop. Breakout level is 16.15 which is just above the premarket price. TLRY had a large move Friday and CRON was upgraded today so the whole space may be in play today. 8% short interest can help move CGC. Resistance 19.45 so room to upside. Risky stock.