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Swing Trade Idea – September 28, 2020

Market View

In the premarket the global indices are strongly positive on scant news, possibly better Chinese industrial profit or hope for a USA stimulus bill or a technical bounce aided by record Nasdaq short positions. USD is sharply lower providing a catalyst for equities and commodities to lift. Yield curve is steeper, which also provides fuel for markets; however the move down in long term yields is muted compared to the rise in equities. The configuration setup is for a range day but one should realize that the overnight move is substantial and a pullback into the open is probable.  The SPY VPOC is 335 which can be resistance and QQQ resistance can be 280 with 281.5 which is top of value. As usual the FAANGMT stocks will be the compass

Premarket names:

SPCE QCOM QGEN QCOM USB upgrades; TSLA procuring Lithium from PLL  EV names WKHS NIO and lithium names; UBER license extended in London; Financials JPM BRK BAC bouncing;  AAPL AMZN NVDA leading the FAANGM trade AMZN Oct primetime meme; Cashless payment strong PYPL SQ V

Stock Idea; SQ

Square is a cashless payment company that has broken out on the hourly chart and had strong call buying last week. Today’s catalyst is an upgrade to 175 by CS. One can look for dips for a long