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Swing Trade Idea – November 17, 2020

Market View

In the premarket ahead of USA retail sales the USA markets are mixed, Europe is red, Japan is red, Hong Kong is red, China is red, Asia is green.  US dollar is down, which is usually positive for markets. Yield curve is flatter with long rates higher.  Nasdaq100 is the only green USA index, driven mainly by AMZN and TSLA with the remainder of the FAANGM red.  TSLA is up on inclusion to the S&P500 in Dec and AMZN is up on expansion of their pharmacy business. EV makers are up on the TSLA news. Drug stores and drug distribution names are down on the AMZN news.  The reflation stocks are weak in the premarket and with many of the FAANGMT ex-AMZN/TSLA weak there is a potential for a trend day down in the DJIA and Russell 2000.  Addition of TSLA to S&P500 will cause gyrations, presumably they will need take down other stocks.

Premarket names:

TSLA added to S&P500; EV Names LI XPEV KNDI RIDE RMG NKLA BLNK ;  AMZN pharmacy biz;  Drug stores and drug distribution CVS WBA MCK; ABBV BMY MRK SNOW TMUS Buffet buys

Stock Idea; ARKK

ARKK is a way to trade TSLA due to a high weight. It is also a way to trade a shift back from reflation stocks. Looking for a pull on the open and then a bounce. Above $100 a long idea is a cross above the VWAP on the 5min chart. Short term target would be  101.5 which is the premarket high.