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Swing Trade Idea – October 09, 2020

Market View

In the premarket,  world markets are mixed with USA green, Japan red, Europe mixed, Hong Kong red and Asia green. USD is weak, which is positive for markets and commodities. Yield curve is slightly steeper which is positive for financials and small caps. Energy is weaker which is negative. S&P 500 is above the expected move for the week and at a high gamma level that may serve as resistance. Odds favor a pullback after the open but continuation is possible. Stimulus on/off/on will be a powerful catalyst.  Russell 2000 is leading premarket as the market has been preferring the weaker, heavily shorted names. The FAANGM and financials are positive premarket, which is important for continuation. FAANGM names have been laggards and are the compass for today’s direction.

Premarket names:

AMD in talk to buy XLNX; NXPI improved guidance; GE price estimate doubled by GS; Semi target raises ON, MRVL, NXPI; Weed stocks on Kamla Harris talk decriminalization THCX ETF APHA ACB CGC TTLRY CRON; Gold Miners KL AU SBSW NRM GOLD; 

Stock Idea; JMIA

JMIA is an e-commerce company based in Africa. Large move Thurs on announcement of a gaming platform that users of JMIAPay app can use.

Large option activity Thurs. Premarket JMIA is moving again so possible day trade candidate.