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Swing Trade Idea – June 3, 2020

Market View

Premarket the world equity markets are set up positive.  Europe, Asia are strong with outperformance by Germany and Korea. Yield curve is steeper with longer rates up, which is positive for financials and hence the IWM and DIA in the USA.  Premarket strength in earnings names (ZM CRWD), energy, semiconductors, banks, materials and travel names. Oil is lower as are precious metals. The USD continues lower with the Euro higher, typically positive for foreign stocks. SPX 3100 is a major gamma level that may act as resistance today. 

Premarket names:

CRWD ZM earnings beat, CRWD may run today; Semis are strong with premarket strength in MCHP and MU.  NIO is a small Chinese name with momentum and HUGE is the Covid stock du jour with FDA approval to test patients.

Stock Idea: CLDR

CLDR is another cloud based software stock in a sector on fire. Reports after the close today so a day trade. CLDR will benefit from the glow flowing to CRWD, WORK and ZM. It has been upgraded, which provides an extra boost.. Usual strategy is to look for the pullback before entering long.  Reaction to CRWD/WORK/ZM should be watched in parallel for confirmation.