.

Swing Trade Idea – October 13, 2020

Market View

In the premarket,  world markets are mixed with USA mixed, Japan red, Europe red, Hong Kong green, China green and Asia red.  USD higher and yield curve flatter  is negative for equities. German economic sentiment is well below expectations,  pressuring the Euro and hence raising the USD. JNJ paused the Covid vaccine trial and there is a developing meme that people are being reinfected with Covid – both are negative for market sentiment. USA markets are highly divergent with the Nasdaq strong again and the Russell weak. Monday was driven by exceptionally high call buying in FANG stocks, especially AAPL and AMZN. Nasdaq is strong in the premarket, again driven by AAPL and AMZN. AAPL iPhone launch is today and we should watch how the stock reacts post the  event. AMZN prime day is underway and results should be available this week.  High call buying and short squeezing can continue to drive the Nasdaq similar to Aug. JPM and C earnings beat should push the financials today. JNJ beat earnings and raised guidance but stock is lower on vaccine pause.

Premarket names:

JPM C BLK beat; JNJ ; AAPL iPhone launch; AMZN prime day ; DIS reorg for focus on streaming; Semis NVDA QCOM MU (upgrade); DKNG upgrade; CLDR UOA

Stock Idea; FORD

Ford has UOA Monday and is advancing in the premarket. Technical breakout above 7.86.  Based purely on option flow.