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Swing Trade Idea – October 08, 2020

Market View

In the premarket ahead of employment report,  world markets are  positive with US, Europe, Japan and Hong Kong positive. Energy is positive which is positive for markets. USD is slightly positive and yield curve is slightly flatter, both of which are slightly negative for markets. News is light: European Covid cases rising, Brexit negotiations going poorly; and USA still discussing the infamous stimulus. Market appears to be pricing in USA stimulus and airline bailout.  The USA markets are broadly positive with FAANGM strong and financials strong. S&P500 is at the top of the expected move for the week and at the Sept highs. This is a level where a pullback is a possibility or a breakout thrust to higher levels.

Premarket names:

MS buying EV;  UAL/AAL/DAL/LUV/JBLU  bailout $ maybe; IBM spinning off a  business unit; MCD increasing dividend;  LLY REGN positive Trump comments;  DPZ EPS miss;  TSM positive sales data;  COST DHI ETSY LTHM OKTA PYPL ROKU target raises;  Lithium requirements doubled LTHM PLL ALB; BHC guidance +;  solar smoking SEDG SPWR  CSIQ FSLR ; Momo names SQ BE PTON NIO BYND FSLY

Stock Idea; AMD

AMD has a strong move up from the Sept correction. Technically is poised for a breakout on the daily chart above 87.75 with target 93. Caveat is AMD moves with the QQQ.  Ideal entry would be a pullback to the 20ema on the daily.