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Swing Trade Idea – October 21, 2020

Market View

In the premarket world markets are are mixed with USA slightly red, Europe red, Japan slight green, Hong Kong green, China green and Asia mixed. USD is lower on the perpetual USA stimulus discussion which is positive for equities.  Yield curve is flatter, which is negative for equities and financials in particular. Oil lower is negative.  Major earnings news; NFLX down on lower sub adds;  SNAP up sharply and lifting all the social media stocks (TWTR, FB, PINS [BTW these were recent reco’s]; TXN beat lifting other industrial semis. S&P500 is bouncing at support after a move up after hours and a retreat back down. Market set-up is for a range day with caveat that a definitive stimulus decision can result in a sharp move in either direction. AAPL, AMZN and MSFT are not strong in the premarket. Watch them if trading the indices.

Premarket names:

SNAP PINS TWTR FB propelled by SNAP earnings; TXN earnings beat MCHP sympathy; NFLX lower sub adds ROKU sympathy; GM continuation JCI earnings beat; TSLA earnings after close; ERIC beat 5G name; FCX copper strong; China strong PDD BIDU DOYU;  JMIA potential runner again;

Stock Idea; JMIA

JMIA is an African based e-commerce company. The AMZN of Africa. Also offers cashless payment and streaming games. Very strong momentum, capable of large intraday moves. Unusual call activity Tues. Hourly breakout > 15.81