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Swing Trade Ideas – May 6, 2020

Market View

Markets are positive this morning ahead of the ADP employment report which is expected to report 20M unemployed.  Market is looking past all negative data with an eye to the USA economy reopening. S&P500 continues to consolidate in a range roughly SPY 270-290 with a bifurcated market led by tech and healthcare.  I am expecting a choppy day – the bond yields are lower and the curve is flatter; USD is stronger; Europe is weak with slow GDP forecasts. This is usually a negative for financials, which affects DIA, SPY and IWM more than QQQ.

Premarket names: 

DIS earnings miss, suspends 1H dividend but opening Shanghai park within week, streaming customers +; ATVI large earnings beat; EA small earnings beat; BYND beat and profitable; ENPH earnings beat should help solar space

Stock Idea: BYND

BYND is up in the premarket with an earnings beat. The company was profitable in the quarter but expectations were for a loss. There is 18% short float so the stock can move sharply to the upside.  A short term target is 116 and a second is 128 should BYND run. Currently 110.6 in premarket. BYND can be a choppy stock. It has options but beware a wide bid ask spread, especially at the open.