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Swing Trade Idea – September 16, 2020

Market View

In the premarket the global indices are mixed with USA green,  Europe red, China red, and Asia mixed. USD continues to fall which is positive for USA equities but net negative in other currencies. Yield curve is flatter which is negative for financials and small caps. Oil is higher due to hurricane Sally and API drawdown greater, which is positive for equities and weaker oil companies in particular. Commodities are mixed, not all reacting to the lower USD. FOMC meeting is the big event which can lead to muted trading in advance and more movement after.  AAPL is weak after Tues product launch and FB is weak on potential FTC anti-trust investigation – all of which is weighing on the markets.  GM announced it will make it’s own EV drive train and motors and is popping and TSLA weakening. ADBE earnings beat and many upgrades but no increase in Q4 forecast. FDX large earnings beat and gross margin increase and many upgrades. SNOW IPO today,  very hot stock in the cloud space, expect strong ramp.

Premarket names:

FB FTC investigation;  GM shocking news that will build electric cars;  FDX earnings, UPS sympathy; ADBE earnings; HTHT earnings;  DKNG deal with NY Giants;  NIO high call volume;  LLY positive vaccine news; MRNA vaccine update Thurs;  Solars RUN, ENPH

Stock Idea; DDOG

DDOG is a software analytics company. Tues had high call activity and today has been given a $110 price target. Daily squeeze and breakout set-up. Would look for morning pullback and strength in QQQ for a long. Will be watching for call sweepers this morning.