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Swing Trade Idea – September 29, 2020

Market View

In the premarket the global indices are pausing after Monday’s outsized up move. USA markets are negative, Europe is negative, Japan is positive and China is negative.  USD is slightly lower today which is providing a bid to gold but commodities in general are mixed with oil and copper negative. Yield curve is flatter, which is not generally positive for financials and small caps. Econ and earnings news is light so media attention is focused on rising Covid cases and the Tues evening USA presidential debate.  USA indices are slightly negative with FAANGM positive ex-AAPL which is slightly negative.  Market is opening relatively flat with no obvious direction, which can result in a range day but will be watching the FAANGM for direction.

Premarket names:

BIG raised guidance; ABT USA will start distributing COVID test units; MKC  beat, guidance weak, stock split; SQ upgrade;   DKNG, BYD Gaming;   PII, THO Mad Money Tonight  

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 195 by Wolfe. One can look for dips for a long