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Swing Trade Idea – September 09, 2020

Market View

In the premarket the global indices are mixed with the USA green, Japan red, Europe green, China red and Asia red.  Oil has bounced; yield curve is slightly steeper; USD is higher with Euro which is mixed for equities. In the USA markets, the Nasdaq is leading to the upside, with the FAANGMT stocks and the tech stocks with the highest YTD gains leading to the upside. USA markets are in the green, led by the Nasdaq stocks, which have been pummelled the last 3 days. There is no major news so it looks like a technical bounce. Typical index corrections range from 6-10% and thus fulfilled, a bounce is normal.  The bounce is being led by the FAANGMT stocks and one should watch them for market direction. A bounce is usually a 38% or 50% Fib, which  is 344-346 on SPY and should test the daily 20ema. Look for acceptance or rejection in this regions. Expect an opening short covering bounce at the open after which market will determine direction

Premarket names:

AAPL FB TSLA ADBE NVDA AMD et al. all faves that are beaten down and bouncing; BNTX MRNA NVAX are up since AZN has had a Phase 3 patient with an issue;  LULU earnings beat but down premarket,  look for BTDers ;  WORK poor guidance, could continue lower; COUP weak guidance; CHEWY earnings tomorrow; CWH continuation;

Stock Idea; SDC

 SDC operates a teledentistry platform. Smile Direct Club has been rising with elevated volume with a weak tape. Recent insider buying,  upgrade today, high short interest and a technical breakout make it a speculative but interesting long idea with a strong tape.  Due to the recent price move, caveat emperor.