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Swing Trade Idea – October 23, 2020

Market View

In the premarket ahead of USA PMI data world markets are generally positive with  US green, Europe green, Japan green, Hong Kong green, China red and Asia mixed. US dollar down and yield curve steeper is positive for equities with financials benefiting in particular.  Oil higher is positive for equities. European PMIs services PMIs missed and are at recession levels but mfg exceeded. Covid cases are rising in Europe but the European stocks are strong regardless. The soap opera named the USA stimulus is still unresolved and expect markets to be moving on intraday rumours. INTC is down biggly on lower data center revenue; GILD is up with Remdesivir approval;   COF is up on a big earnings beat taking down loan loss reserves; AXP is down on an earnings miss. FAANGM are positive with AAPL leading, as usual watch them for market direction. The market has been rotating into the laggards i.e. small caps, financials, energy etc and today we should watch to see if there is continuation. With AAPL, AMZN,FB,MSFT earnings on tap we may see a rotation back.

Premarket names:

AXP miss INTC miss AMD gain BLMN beat MAT beat HAS love   BNTX MRNA vaccine Banks WFC BAC JPM  COF earnings JMIA momo names

Stock Idea; UA

The beat up stocks are moving and UA falls into this category. Earnings Oct30 and the thesis is if the trend continues UA may continue to run into earnings. RJ has raised the price target to $20 which can provide an additional catalyst.