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Swing Trade Idea – August 26, 2020

Market View

Global markets are mixed Wed with USA markets mixed, Europe green, Japan red and China red. Nasdaq is green while Russell 2000 is red and S&P500 is flat. Yield curve is steeper with longer rates higher which is normally good for financials but not evident in the premarket.  Oil lower, USD higher is negative for equities. Germany extended job preserving subsidies until end of 2021 which may be helping the European stocks. Hurricane Laura will be hitting Texas-Louisiana but gasoline and oil are down.  Nasdaq is the strong USA index with FAANGMT (AAPL, FB, TSLA) generally strong and  earnings beats by CRM and INTU are powering software stocks.  Bulk of S&P 500 are unchanged so would focus on tech and software in particular

Premarket names:

CRM INTU PLAN earnings beats SPLK WDAY preearnings software names JD PDD BABA China strong again  DKS URBN retail beats ADBE DOCU software strength NIO continuation on upgrade ROKU heating up

Stock Idea: CLOU

The CRM earnings are propelling all the cloud names. An alternative to trading CRM, WDAY etc is through a basket and one ETF is the CLOU ETF.  As usual, look for pullback on the open for a long.