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Swing Trade Idea – September 17, 2020

Market View

In the premarket the global indices are weak following the FOMC meeting which reiterated USA rates will be kept low for the foreseeable future.  USA markets are red, Japan red, Europe red, China and Asia red. USA markets are being led down by the large cap tech stocks, which have driven markets up.  Oil is weaker today and yield curve is flatter which is negative for equities. The USD is flat  which is neutral,  but if USD starts to rise we could see more market weakness. The USA employment report is pending this morning and may be market moving; otherwise there is little earnings data to move markets. The set-up this morning is for a trend down day; however indices are very oversold. One should be prepared for further selling below SPY 330 but equally prepared for a bounce today. Watch the FAANGMT stocks for a directional change.

Premarket names:

BNTX PFE MRNA NVAX vaccine names positive; GE large move Wed on forecast for profitability 2021; FCX rumour of Barrick buying; MLHR earnings beat; PLAY earnings miss; SRNE Covid approval

Stock Idea; FCX

FCX is a copper/gold miner which has been strong with strength in copper and commodities. The market is very weak today but FCX is holding up on a rumour of a buyout by Barrick.  Would add FCX to a watchlist for a long on a dip with caveat that market must hold.