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Swing Trade Idea – May 13, 2020

Market View

Ahead of the open, USA markets are positive with Nasdaq leading, China and Asia are green but Europe is showing some weakness. Macro factors are mixed. Yield curve is flatter which is not positive for financials; oil is higher and the USD is lower. The Tues drop was driven by the FANG stocks which were getting over cooked. Media are blaming the CA delay in opening, Dr Faucci comments or potential trade issues with China. In premarket the leaders are (1) high short interest momentum tech (2) semi (3)  biotech (esp Virus related) (4) China Internet after Tues drop on news. Markets, USD, bonds are all consolidating and a larger move up or down should be expected given the elevated volatility. The SPY expected range for the week is 290-300.

Premarket names: 

PTON upgrade; LVGO health monitoring Cramer mention; JD upgrade;  BYND veggie burgers TCEHY PDD BILI VIPS China Names LH virus testing 

Stock Idea: LVGO

LVGO is a healthcare company that allows patients to be remotely monitored by doctors. Like TDOC it is in a hot sector that should continue to grow as medicine evolves to be more online. Stock has been hot and received a Cramer bump on Tues.  May run out of the open but prefer pullbacks intraday for long.  Short interest is 6% so not super elevated for such a stock. There is no overhead supply. The 1.618 Fib extension target is $74.62, blue sky target not anchored in fundamentals.