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Swing Trade Idea – September 30, 2020

Market View

In the premarket pre-ADP jobs report, the global indices are generally weak with USA red, Europe red, Japan red but China green. USD is positive, which is negative for equities and commodities. Yield curve is slightly steeper but not significant. Oil is also lower, which is negative for markets. Rising Covid case meme, no deal Brexit and USA election uncertainty memes are dominating the news wires. Positive Chinese econ data is buoying Chinese stocks and these may provide bullish opportunities today.  FAANGM are weak premarket and they will determine the USA market direction. SPY overnight low 329.5 is a level to watch

Premarket names:

DUK possible takeover; MU earnings;  BABA cloud biz making money; MRNA REGEN positive Covid data; DIS 28k layoffs; Upgrades SBUX, PII, SYNX, GOOS; NIO en fuego

Stock Idea; BABA

BABA is up substantially premarket and breaking out on the hourly chart.  Catalyst today is likely the news that their cloud business is profitable.  China has been recovering from Covid and the stocks outperforming. BABA tends to sag in the morning and can be a better entry.  KWEB ETF is a general way to trade China internet stocks