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Swing Trade Ideas – June 5, 2020

Market View

Ahead of the jobs report the world markets are configured very strong but extended. USA unemployment is expected to be close to 20M. No idea if market will like higher or lower numbers as higher leads to more stimulus. Oil is higher on chatter of OPEC+ having some agreement. Factors are aligned positively with the US yield curve steeper and commodities higher with the USD lower.  The DJIA and IWM are leading with a higher percentage of financial and cyclical companies. Light earnings report so not much to move the market. Premarket the casinos, airlines and banks are leading.

Put-call ratio is getting low and sentiment indicators are looking overcooked so keep your head on a swivel.

Premarket names:

WORK down 16% on earnings after posting a good report but a substantial run-up – may be a candidate for a bounce trade in the morning. May be a candidate for a bounce. AAL UAL SAVE MGM LVS CCL  etc are on fire again today Banks and Insurance are strong. LEVI looks interesting, up in the premarket and in a bull flag breakout pattern

Stock Idea: WORK

Slack reported good earnings but is down 16% post report. Analysts are out with target raises to 38. Slack is a candidate for a short term bounce trade. Watch for opening weakness and consider long over VWAP.  Thesis is that traders will come back into it.  Highly speculative.