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Swing Trade Idea – July 21, 2020

Market View

Global markets are broadly positive across the globe this morning. Oil is higher, USD is slightly lower and yields are unchanged.  All sectors are up today from FAANGM to financials so possibility for a momentum trend day.  The catalyst is weak IMO, the Eurozone agreed to a 800B euro stimulus plan that is lower than expected. The Euro stimulus has a large green energy component which may help solar stocks  There are two smaller biotechs with some preliminary vaccine data and the market always reacts positively to such news. IBM and KO earnings were deemed good and both are up, which will help the DJIA.  Assuming they don’t sell the open, the DJIA and Russell2000 may be relative outperformers since they have been laggards and the financials are bouncing this morning.

Premarket names:

IBM  KO BNTX  MSFT AMZN TSLA AAOI upgrade, high short interest
Solar stocks China internet stocks  Electric vehicles

Stock Idea; ELY

Callaway golf is part of the outdoor theme. Hibbett sports reported good earnings which is a boost for ELY and others like NKE.  Virus lockdown has been considered a boon for ELY and others. ELY is just above the 200 sma and in a bollinger band squeeze so poised for a move. Up in the premarket with a 19% short float to help move. Small cap, low float company with decent fundamentals.  Earnings Aug 6