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Swing Trade Idea – November 24, 2020

Market View

In the premarket world markets are broadly green with USA indices, Japan, Europe, Hong Kong and Asia all positive.  US dollar lower is positive for equities and commodities including energy; however negative for precious metals. Yield curve is steeper with long yields higher which is positive for financials and small caps. 

Volatility is dropping and market mechanics will lead to automatic buying of equities and hedging requirements reduce. Media meme is that it’s a removal of presidential uncertainty.  Flow is into the small caps, financials, energy at the expense of large cap growth which as led for multiple years. EVs/Alt energy, bitcoin and weed stocks are hotter than the sun. If looking for a concern, then can choose between the underperformance of the large cap growth stocks or the very stretched reopening stocks. Keep your head on a swivel and remember you don’t go broke taking a profit.

Premarket names:

Earnings ADI AMBA DLTR NTNX PLAN MP; Upgrade GE WFC  Bitcoin GBTC RIOT MARA BTBT MYST;  EVs  NIO TSLA LI XPEV SOLO KNDI RIDE LTHM FSR HYLN ;  Weed ACB CGC GRWG VFF IIPR Momo JMIA DADA PLTR BIGC

Stock Idea; MP

Mountain Pass is a rare earth mining company located in North America. Bulk of rare earth metals are mined in China and Africa so MP is important as a source of these metals critical to liithium Ion batteries. Recently converted from a SPAC. DOD financially contributing to MP. Earnings announced Nov23 were positive. View this as a long term hold but momo traders can look for short term dips.