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Swing Trade Idea – July 24, 2020

Market View

Global markets are negative with USA, Europe and China negative.  USA market weakness is being led by Nasdaq with Russell relatively strong.  Catalysts for the drop could be China-USA tension, higher Covid cases or profit taking in extended Nasdaq stocks (my choice). Bonds and USD are flat and not indicating risk-on. Energy is positive which is a positive for equities. INTC announced further delays in their next generation chips which has killed the stock in premarket but a huge benefit for AMD and TSM which are up. QQQ is at a major support level with support at 248. Gamma is negative so possibility of a major move down is a possibility as is a bounce at support. S&P500 and Russell2000 are only modestly down in premarket, which is a positive. Watch for correlated selling across all indices as a harbinger for a greater move down.

Premarket names:

AMD TSM gaining from INTC woes; TWTR upgrades; MRNA adverse patent ruling  EW good earnings TSLA continuing distribution.  SKX positive guidance TWTR upgrades

Stock Idea; AMD

AMD is the beneficiary of INTC woes as well as TSM. AMD did have a surge already as someone must have known but there can be follow through.  Look for a pullback at the open as an opportunity for a long.  Would also monitor TSM as INTC is talking about moving to external mfg. INTC will be a buy the dip opportunity but may see a pop that turns into a short opportunity for active traders.