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Swing Trade Idea – October 28, 2020

Market View

In the premarket global markets are red with international indices down. USD is stronger, which is negative for equities, commodities and foreign stocks and reflects risk-off sentiment. Yield curve is flatter with long term yields higher which is also negative. MEME is the increase in Covid cases and the increase of restrictions in Europe.  The factor set-up for markets is for a trend-down which can accelerate as SPY has moved below the bottom of the expected move. MSFT earnings were ok but Personal Computing missed and cloud growth is slowing. The latter is negative for the leading tech sector. SPY 331.18 is an important level to watch, the previous pivot low from Oct.

Premarket names:

MSFT earnings beat but disappointed ;  FSLR ENPH earnings beat; BG beat; ADP beat; MA miss V down in sympathy; ZM strength; TUP beat;  GE beat; Energy travel and leisure SNE Raising profit target 

Stock Idea; SNE

Sony raised its fiscal outlook by 13% on the back of the video game unit.  Video gaming is a sector which is more Covid proof than other sectors.  Japanese stocks are trading at lower valuations than USA stocks and SNE is not a member of the QQQ, which is under pressure.