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Swing Trade Idea – July 13, 2020

Market View

USA markets are green led by the Russell with good support by the FAANGM names. Europe and Asia are also green but China is taking a breather. The USD is weaker and yield curve is steeper, which is positive for equities and financials in particular. Oil is lower and there is news that OPEC may increase production. Precious metals are stronger with silver and platinum outperforming. Financial stocks are positive in the premarket and may run into earnings; semis are strong on news that ADI buying MXIM; PFE and BNTX FDA news may help the biotech sector and analysts are chasing FANG stocks as prices rise.  NFLX with earnings this week is one of the FAANGM names that will be chased this week into the report.

Premarket names:

SPAQ Fisker to list NYSE; PFE BNTX FDA fast track; ADI buying MXIM; DIS opening FLA; TSLA battery day and price cuts

Stock Idea; MS

Financials are reporting this week. There is large uncertainty but expectations are low. MS is technically the the strongest of the group and strongest in the premarket. If the market remains strong on the open, the financials may continue to run today. MS reports Thurs but will react to the Tues reports by JPM WFC and CITI.  Usually expect a dip at open, which may be an opportunity for a day trade or a position into earnings. Caveat is that weak reports Tues will be negative for MS.