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Swing Trade Idea – July 07, 2020

Market View

World markets are soft after a strong surge Monday. Europe is weak after the European Commission cut it’s economic forecast for 2020 with GDP contraction 8.3% vs 7.4%.  China had a record move Monday and is pulling back a bit today. Yield curve flatter, USD higher and energy down is alignment for a weak open. Flatter yield curve is negative for financials and hence the Russell 2000 and DJIA versus the Nasdaq. The FAANGM stocks are looking ok in the premarket but extended. SPX 3150 is a key level to watch as it’s a high gamma level.

Premarket names:

RUN buying VIVENT; NVAX govt $; REGN govt $

Stock Idea; Solars-SEDG

RUN buying VIVENT may spur some action in the solar stocks. SEDG and ENPH are two of the fast movers and TAN is an ETF. SEDG is at the top of the value area with $156 the all time highs. SEDG has had a big run in the last week. Potential day trade on a morning pullback, ENPH is another possibility with more room to the upside.