.

Swing Trade Idea – November 2, 2020

Market View

In the premarket global markets are in bounce mode possibly because oversold or because Chinese and European PMIs are better than expected. US dollar and yield curve are relatively unchanged and non-factors. Commodities led by oil are generally lower and not supportive. The USA markets are broadly positive with a correlated up move, likely some short covering after last week’s action. The DJIA stocks are leading in the USA, i.e. blue chip dividend payers. The DJIA bounced off the 200sma Friday and is relatively weak so perhaps the machines are buying the laggards. FAANGMT stocks remain the key market movers and it is important that Friday’s lows hold. MSFT is a relative leader in the premarket. One must be prepared for the bounce to continue on the open or for the selling to resume. SPY 330 is a critical level to watch, bullish above. QQQ 270 is a critical level to watch, bullish above.

Premarket names:

NIO deliveries good LI WKHS TSLA all positive;  Alternate energy strong SEDG ENPH BE PLUG JKS; Gold miners GFI AU NEM GOLD;  China BABA PDD TCEHY JD; Earnings beats CLX EL earnings;  PYPL earnings after close; PTON earnings this week;  UA, WYNN upgrades

Stock Idea; BABA

Earnings Nov5 BMO.  Last week there was high call activity in BABA and analyst target raise to 355 is a catalyst. BABA will typically run until 10-1030am before pulling back so one should take care. 312.78 is the premarket high which can be resistance followed by 315