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Swing Trade Idea – November 18, 2020

Market View

In the premarket  the USA indices are green, Europe green, Japan red, Hong Kong green, China green and Asia green. There is no major econ data to provide a catalyst and major retail earnings were positive. US dollar is slightly down and 10yr yield is slightly higher, both not significant. US indices are all green with the DJIA and Russell 2000 leading. Travel stocks are up, potentially  due to additional confirmation data from BNTX/PFE for Phase 3. Commodities and bitcoin are strong implying additional US dollar weakness.  USA markets appear set for a range day with the caveat that volatility is rising and can lead to some excitement. FAA report on BA 737MAX is due in days leading to some strength in BA and its suppliers.

Premarket names:

BA suppliers SPR GE; TGT earnings; LOW earnings; Bitcoin GBTC RIOT MARA BTBT;  EVs  NIO TSLA LI XPEV SOLO KNDI RIDE LTHM FSR ;  Momentum names BEKE JMIA PLTR FUTU 

Stock Idea; TSN

TSN is a food company that is a supplier of meat products to restaurants and homes.  It was hurt by Covid as production was cut  due to employee illness and restaurants were shut down and not buying.  TSN has had 2 earnings beats indicating business is recovering. It should benefit from restaurants reopening and inflation in commodity prices. View TSN as a longer term idea with short term targets 68.60 for a swing trade. 200SMA at 62 is support.