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Swing Trades Delivered – April 23, 2020

Market View

Ahead of the US unemployment report the markets are mixed. Europe PMIs were lower than expectations and recessionary but markets only mildly down. Asian markets are positive, providing some support. Bonds are flat, USD flattish and commodities are generally positive. SPY key levels are 280 and 274. Above 280, 285 is a target. Below 272, there is the potential for larger drops

Premarket:

TGT reported strong online sales but lower margin products. Stock is down premarket and could affect WMT.  DFS missed earnings and increased default provisions, would watch COF and other credit card companies. Energy is a positive, led by nat gas names like CLR, CHK.  Oil tankers are again strong with excess oil STNG, TNK, FRO, EURN, DHT.  Gold miners are strong led by GOLD and KL. LVS beat severely lowered earnings estimates and casino names MGM MLCO PENN are all up in the premarket

Stock Idea: STNG

The surplus of oil has led to large traders storing oil in tankers and increasing the rates massively. Scorpio tankers is not predominantly an oil shipper but is benefiting from higher shipping rates. One can see that it has retraced 50% of the drop and poised for a potential breakout with little overhead supply. Price above 26.11 would confirm. Stock often dips on the open and then moves higher throughout the day. Caution its’ volatile.