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Swing Trade Idea – September 18, 2020

Market View

In the premarket the global indices are weak with USA mixed, Japan red, Europe red, China green and Asia mixed.  USD is neutral and a key factor to watch as equities are inverse correlated. Yield are flatter which is usually positive for high growth and gold but negative for financials.  USA tech is currently the strong sector led by FAANGMT and semis.  News light with potential ban of Ticktock currently a positive for FB and SNAP and a negative for ORCL and WMT.  Consumer sentiment data will be released at 10 EDT and may move markets. Today is quad witching which may lead to choppy market moves at the open and at the close as well as an increase in volatility next week.

Premarket names:

TSLA run into Battery Day; APTV target doubled; ERIC deal; Miners 49ers TECK FCX SBSW RIO VALE; FB SNAP up on TickTock rumour; ORCL WMT down on TickTock cancel rumour;  PENN BNTX hot hot hot; NKE upgrade; BYND downgrade

Stock Idea; TSLA

TSLA has been outperforming the large cap tech companies recently and is running into the Battery Day and investor meeting next Tues. TSLA is above 50sma on hourly with resistance to 460. High option open interest at 500 strike next week with traders speculating on positive news. TSLA is a bullish idea into the event with caveat that could be a choppy tape today.