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Swing Trade Idea – October 12, 2020

Market View

In the premarket,  world markets are mixed with USA green, Japan flat , Europe green, Hong Kong green, China green and Asia red. USD is higher and yield curve is flatter (Bond market closed), which is a negative for the financials and small caps.  Oil is lower, which is negative for equities. USA markets are being led by large cap tech with AAPL AMZN leading into their event days this week.  Stimulus is still being debated and one should expect tweets intraday that can move the markets.  In the premarket the large tech stocks are strong along with the leading momo and leading IPO stocks. Chinese internets are strong with Hang Seng very strong in the premarket. Focus today should be the Nasdaq stocks and high growth momentum. Nasdaq has already made a large gap so one should be open to a pullback at the open.

Premarket names:

AAPL event Tues, AMZN prime day this week; DOYU HUYA merger;  EV and Lithium NIO TSLA WKHS LI; TWTR upgrade; SNOW FROG upgrade; TWLO buying Segment ; DDS BRK investment revealed

Stock Idea; SNOW

SNOW is a recent IPO in the cloud software space. Today’s catalyst is numerous initiations and upgrades with target prices 250-305. Goldman target 268 is the previous daily high.