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Swing Trade Idea – November 12, 2020

Market View

In the premarket ahead USA CPI and UE claims, the global markets are weak with USA mixed, Japan red, Hong Kong red and Asia red. European industrial production lower than expectations, rising COVID cases and normal pullback after a sharp rise (my thesis) are explanations. Powell and Lagarde are speaking today which can move currencies. Long yields are lower, which is a negative for financials and small caps. US dollar is flat but Euro and Yen are higher and commodity currencies sharply lower. Like Wed, the Nasdaq is outperforming by being positive with the other USA indices negative. The FAANGM stocks will be the key today for supporting the USA markets. China internet stocks are up in the premarket on the back of strong singles day sales. Between BABA and JD, $116B was transacted indicating a healthy Chinese consumer. PDD reported blow out earnings and is up 20% premarket.  SPY 350 is the key level to hold and 360 resistance.

Premarket names:

PDD earnings BABA JD VIPS BZUN MOMO China names LI XPEV NIO KNDI FSR EVs CRM downgrade JMIA SE nonUSA eCommerce FUTU IBD50 fintech PLTR recent IPO 

Stock Idea; PLTR

PLTR is a recent IPO that has caught recent momentum action. Breakout Wed and premarket strength today. Would look for a pullback after open for entry. Palantir Technologies Inc. builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.