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Swing Trade Idea – September 02, 2020

Market View

Global markets are strong writing ahead of the US ADP jobs report. USA markets are strong, Europe is very strong, Japan is strong, China and Asia are mixed. Econ news: German retail sales were 1.4% below expectations, Spanish unemployment 3x expectations; Australia confirmed first recession in 30 years due to low demand for commodities from China; and optimism continues for more USA stimulus which is still being debated. Yield curve is steeper with long yields higher which is positive for financials; USD is higher (on positive PMIs) which is negative for gold and commodities but oil is higher in advance of an expected US drawdown (data at 10AM EDT). USA markets are still being led by the  Nasdaq and FAANGMT stocks. The large tech companies are being driven by large option call buying in individual names and can remain a focus as long as it continues. Leaning long on the day but expecting an opening dip with caveat that the jobs report can change the thesis.

Premarket names:

DOCU CRWD PTON CHWY WORK ZS premarket run continues  AAPL TSLA JD momo continues NVDA upgraded  LULU upgraded WMT continuation  INTC starting the bounce? Z Housing sales strong

Stock Idea; LULU

LULU broke out Tues from a flag and is up in the premarket. Three analysts have upgraded it premarket with targets of 341-445. Earnings are Sept8 and this could be the start of the run into earnings. Look for an opening dip and watch the QQQ for confirmation.