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Swing Trade Idea – September 22, 2020

Market View

In the premarket the global indices are mixed with USA markets green, Europe green, Japan red, China red and Asia red. USA markets are being led up by the Nasdaq, which open weak and closed strong Monday. Europe is higher on less Covid concern as UK did not enter a full lockdown. USD is currently slightly negative/neutral and important to watch as equities, foreign stocks commodities move opposite to the USD. Yield curve is slightly steeper/flat and also important to watch as a steeper curve is positive for financials and the small cap index.  The Nasdaq stocks may provide the greatest opportunity as they finished strong Monday and are leading in the premarket. We need to be mindful that the short term trend is down and be watching for selling to resume. Should equities continue to move to the upside, the FAANGM stocks and previous leaders are candidates to the upside.

Premarket names:

TSLA battery day but Elon tweet is downplaying; ORCL TikTok deal muddied; CVNA VRM GS upgrade; ZM continuation; EA ATVI TTWO gaming stocks strong yesterday; AMZN Upgrade

Stock Idea; AMZN

AMZN is on the radar this morning with an upgrade by Bernstein with a price target of $3400. 20D hourly chart shows a volume by price gap above 3033 with a volume point of control at 3150.Risk is  rejection at down trend line and a return towards the lows.  Watch the QQQ for confirmation to the upside