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Swing Trade Idea – November 19, 2020

Market View

In the premarket  the USA indices are red, Europe red, Japan red, Hong Kong red, China green and Asia red. USA unemployment claims, USA PMI are pending and Lagarde is speaking today which can impact markets. Meme affecting markets is potential for shutdowns due to Covid kicked off by NYC shutting schools. US indices are all red with large caps leading.  US dollar is bouncing from oversold levels which is negative for equities and commodities. Long yields are higher which is negative for equities but less of an issue for tech. FAANGM stocks are relatively flat with AMZN slightly outperforming.  TSLA continues to outperform with the S&P500 addition driving it. NVDA reported good earnings but is currently down in the premarket and a potential bounce trade. 

Premarket names:

NVDA suppliers; LB PLCE  earnings;; Bitcoin GBTC RIOT MARA BTBT;  EVs  NIO TSLA LI XPEV SOLO KNDI RIDE LTHM FSR ;  Covid Vaccine PFE BNTX MRNA 

Stock Idea; SHOP

Shopify is an e-commerce company that has pulled back on the rotation from momentum to value stocks. Price is currently at a major support level above the 900 level.  Catalyst today is an upgrade by Jefferies to $1250. $955 is a key level for signaling a possible breakout with a target of $1025.  $930 is a support level on the hourly. Retail is improving and the trend to online shopping is not going away.