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Swing Trade Idea – May 15, 2020

Market View

Ahead of the USA open and prior to USA sales data,  markets are down, with the media assigning responsibility to China-USA trade tension. USA has reopened restricting shipments to Huawei and a China tweet discussing blocking USA companies such as BA, AAPL and CSCO. Impact is semi stocks are all down as are companies with China as a key customer. This is not the first time that this has been raised; however markets are skittish. Volatility rose sharply Thur before receding and is currently rising.Today is options expiration and with elevated volatility it may be bumpy today. Suggest watching Vix for clues to the direction of the markets. SPX 2850  is an important level today, above it the market will be well supported and below the market can drop sharply. SPY 282 is a high volume by price level that may be a good level to watch for bulls as was the level that Thurs rally launched from. Market likes NVDA AAPL AMD so look for buyers to step in after morning selling but be alert for alternate thesis of a gap down .

Premarket names:

JD earnings beat; AMAT earnings miss; Semi BA AAPL CSCO QCOM China issue; FTCH earnings

Stock Idea: JD Long

JD is a $69B Chinese online retailer that beat earnings and revenue and reported 20% revenue growth. JD is technically strong on daily and weekly. It’s breaking out of a flag on daily with previous high of 50.69 to watch. Up in premarket, would look for a pullback to enter. May be affected by the China-USA news today so be careful.  Watch PDD BABA VIPS as well.