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Swing Trade Idea – July 02, 2020

Market View

World markets are all positive ahead of the BLS jobs report. US market is being led by small caps but the largest market cap companies are strong in the large cap indices.  Oil is higher, USD is lower, commodities are higher and yield curve unchanged so positive setup for a risk-off move. US senate voted to extend paycheck payment program which is a positive for consumer spending. The virus meme seems to still be positive following the PFE announcement yesterday. Need to be prepared for a strong move up or a sag at the open. Yesterday the US markets were strong with negative breadth, with the FAANGM stocks doing the heavy listing.

Premarket names:

NIO TSLA electric cars NIO volume TSLA reporting; PFE vaccine meme; FAANGM in favor; NUS earnings and upgrades; FIZZ earnings beat

Stock Idea: NIO

NIO is a Chinese electric car manufacturer  that reporter vehicle shipments that exceeded expectations.  Electric vehicles and alternate energy are hot.  TSLA is reporting shipments soon and the stock is hot. The short interest in  NIO is 15.6%, which can add rocket fuel. March 2019 high is 10.6, which is a target. All time high is 13.87. Look for dips on open for long.