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Swing Trade Idea – September 11, 2020

Market View

In the premarket the global indices are generally up with USA, European, Chinese,  Japanese and Asia all in the green.  Yields are flat, USD is lower and oil slightly higher – all of which is positive for equity markets. USA markets are broadly positive with all stocks in the S&P100, something we haven’t seen in a while.  Large cap tech is leading with positive moves in FAANGMT stocks.  There is no obvious catalyst for the premarket move, possibly short covering with the indices showing a possible bear flag and many looking for a test of the 50 SMAs. Setup is for a potential trend day up but should keep an open mind for a reversal back down. FAANGMT stocks are the indicator to follow.

Premarket names:

PTON CHWY ORCL up on earnings and upgrades. Cloud names will move with ORCL  CLOU; ADBE another upgrade and pre-earnings run; FAANGMT all positive with AAPL, TSLA strong volume;  Semi bounce NVDA strongest AMD; MOMO names KODK, NLS, OSTK, PENN, WKHS, SPAQ, NIO

Stock Idea; PTON

PTON had the expected beat and positive guidance. Analysts have raised targets in a range from 111-120. Look for profit taking on the open and a bounce to the premarket high of 100.89 using vwap or 20ema as a support level.  Rating:  Highly Speculative