.

Swing Trade Idea – August 19, 2020

Market View

Global markets are slightly positive in premarket with USA mixed, Europe green, Japan green and China red.  Energy is red as OPEC meets and ahead of the 10:30 oil inventories which is not a positive for equities. Yield curve is flatter as long rates decrease, which is usually negative for financials but positive for equities. USD is slightly up, is a slight negative for US equities.  Gold is pulling back from 2000.  FAANGM, which has been driving the USA markets is not showing it’s usual strength. If FAANGM continues to weaken, indices may follow unless the financials and other lagging sectors backfill. Financials are showing some strength in the premarket. Should the market rotate, look at the financials and small caps. FOMC minutes at 2pm may move markets. Expecting a range day but weakness in FAANGM can lead to softness .

Premarket names:

TGT beat;  LOW beat; Gold miners weak; ABBV up;  GILD down on FDA

Stock Idea; ABBV

ABBV is a technical breakout idea. Showing some strength the last few days and strong in the premarket with a weaker tape.