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Swing Trade Idea – July 10, 2020

Market View

USA markets are weak in the premarket as Covid spikes in Hong Kong, Tokyo and USA raise concern or simply profit taking ahead of earnings season. China and Asia are weak but Europe still green so a mixed backdrop. Oil is weak and yield curve is flattening is a negative backdrop for the Russell2000 and DJIA.  The FAANGM stocks are weak in the premarket with the exception of NFLX.  Weakness in the trillion dollar stocks can lead to larger moves down in the SPY and QQQ.  The quarantine theme i.e. ZM NFLX and grocery stores may work today coupled with fades of the most affected companies such as travel &  leisure.

Premarket names:

SPAQ SPAC rumored for bringing Fisker to market; Electric cars are hot in a cold market NIO TSLA strong in premarket; Airlines, casinos, DIS all weak; TLT looks good

Stock Idea; SPAQ

Spartan Energy Acquisition is rumoured to leading the bidding war to take Fisker Automotive public.  Fisker is an electric car maker and electric cars are the latest hot meme.  This is a risky, volatile idea for the most aggressive traders.  Premarket high is 17.9.  Usual strategy is to look for a pullback on open and long over vwap with premarket high as first target.