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Swing Trade Ideas – June 12, 2020

Market View

Markets are bouncing in the premarket with Europe, Japan and USA green. Oil is higher and yield curve steeper so positive setup into the open. USA markets are being lead by financials, travel & leisure but technology is also strong so broad based bounce.  Potential for a strong trend day but would look for indices to take out the overnight highs to have confidence in the bounce. Premarket leadership by Russell 2000, DJIA. FAANGM stocks must be watched as they are key for the bounce to continue.

Premarket names:

ADBE earnings beat and upgrades, watch all time high; LULU earnings miss and drop but after hours buying; GM GS picking over TSLA;  TSLA been strong,  look for reaction,  high volume in premarket

Stock Idea: LULU

LULU was extended into earnings and missed earnings and revenue resulting in a drop after hours to the bottom of the expected move. Analysts are mixed with targets this morning from 192-365. Company is beloved and a popular Robinhood stock.  Thinking opening dips can be a day trade opportunity off of vwap or 20ema on 5min.  Stock is fundamentally expensive so only a sentiment trade.