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Swing Trade Idea – October 02, 2020

Market View

In the premarket world markets are generally negative with USA, Europe, Japan negative but China strong. Macro factors are set-up negatively with USD higher, yield curve flatter, oil lower and commodities generally weak. Non-farm payrolls will be released premarket and will impact markets but current headlines are dominated by Trump testing positive for Covid. USA congress passed a stimulus bill that will be rejected by the Senate so stimulus is still pending. Premarket the Nasdaq is the weakest index, with the strongest stocks leading to the downside i.e. FAANGM.   With markets strongly down and factors negative, one should be open for a trend day down but equally  prepared for a bounce. If Covid/lockdown fears escalate, we may see money rotate back into the tech sector and stocks like ZM PTON which have strength and benefit from lockdown and away from reopening names like the airlines.

Premarket names:

TWLO positive guidance;  NIO TSLA strong delivery quarters;  PTON ZM DOCU ROKU lock down names; MRNA BNTX NVAX INO vaccine names 

Stock Idea; TWLO

TWLO is up premarket with an increase in it’s revenue forecast. A further catalyst is a target raise today to $270. Caveat is that the market is jumpy and tech is currently leading to the downside. Usual suggestion is to look for intraday dips to enter long.