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Swing Trade Idea – October 06, 2020

Market View

In the premarket world markets are mixed but improving as the opening approaches. USA markets are mixed, Japan is slightly positive, Europe and China are green. Yield curve is steepening which is helping the Russell to move higher. USD is lower, which is a positive for equities and commodities. Oil is higher which is positive for equities. The meme’s du jour are: Trump is back, removing uncertainty;  a Dems blue wave will remove contested election uncertainty plus lots of stimulus and inflation; and the Dem lead congress would like to break-up the trillion dollar companies. The former is supportive for markets  globally; the second is good for Russell2k and reflation stocks and bad for bonds and USD;  the third is leading to the FANGM weak in premarket. Expecting a range day today if FANGM stocks remain weak.  SPY may find resistance at 340 which is a high gamma level and 342.6 which is the top of the expected move. Lagarde and Powell are speaking intraday so keep your head on a swivel.

Premarket names:

BNTX PFE lifting on vaccine news; lithium stocks hot LTHM ALB; AYX +20% on 11% rev increase watch other analytics companies; solars red hot SPWR; Upgrades BA BBBY COST NVDA SHOP

Stock Idea; SNAP

SNAP  and other social media stocks have been strong. SNAP has broken out with high call activity. Catalyst may be the antitrust / breakup meme that would affect FB and GOOGL. TWTR and PINS have also been hot.