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Swing Trade Idea – October 19, 2020

Market View

In the premarket world markets are broadly up with USA, Japan, Europe, China and Asia all higher. USD is sharply lower and yield curve steeper which is positive for equities and the latter positive for small caps and financials. China GDP numbers were sharply lower than expectations but growing; hence a positive for today. The USA stimulus on going saga now has a random deadline of Tues evening, which the market takes as a positive. The perpetual Brexit deal is being interpreted as positive which is helping the UK pound. Nasdaq is leading the USA indices and currently seems the pony to ride. FAANGMT stocks are all up. TSLA, NFLX are reporting this week and are both up and may run into earnings. AMZN is bouncing after a Fri dump at the close. Analysts seem divided on whether Prime Day was a big success or flat. Many semi stocks are reporting this week and are all up in the premarket. INTC, TXN, LRCX are some of the big names reporting, but NVDA and AMD are the Robinhood faves.  PFE and BNTX are riding the vaccine coming wave.

Premarket names:

PFE BNTX MRNA vaccines;  NFLX earnings;  TSLA target raise  LI BE WKHS NIO EV and alt energy;  SNAP target raise and earnings on tap; IRBT upgrade and earnings this week; IBM earnings after close; BTG, AU gold miners;  SQ, PYPL premarket bid;  TEAM target raise, big move Fri;  

Stock Idea; SNAP

SNAP is reporting earnings Oct 29  and receiving attention from call buyers.  Bullish on hourly chart above all moving averages. Breakout  level on hourly is 28.56. High Call OI 30 strike may be resistance.