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Swing Trade Ideas – April 8, 2020

Market View

Markets are mixed in premarket with USA markets positive but Europe and China negative. The USD is positive, which is also negative for the market. Bonds are lower with the yield curve steeper, which is a positive for the market and the financials.

The market looks set-up for a consolidation day and will be looking for SPY to stay above 263 to remain bullish with an expectation of 263-275 as the potential range. With USA markets up in premarket and at overnight highs, expecting a dip at the open but prepared for continuation higher.

Netflix

NFLX has been one of the strongest stocks during the virus outbreak. Bernstein has raised the target to 487 and feels that the boost from the pandemic will be lasting. BOA reports that NFLX churn is decreasing and that NFLX may outperform in a recession in addition to shelter in place.

Earnings are April 21, and NFLX may run into earnings as one of the few companies with earnings not affected by the virus. Hourly chart is bullish with resistance at 384.4. 

Previous all time high is 393.