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Swing Trade Idea – November 3, 2020

Market View

In the premarket global markets are in bounce mode ahead of the US election.  US dollar lower and yield curve steeper is positive for commodities, foreign equity, US financials, and small caps. US premarket set-up is similar to Monday with strength in small caps and low growth dividend-paying large caps i.e. stocks that have lagged the market. Media meme is that the blue wave will result in greater USA govt spending that will improve the world economy at the expense of the US dollar and inflation. The FAANGMT stocks are key today. They do not need to lead but if they are sold, it will weigh on the market. Expect volatility today and keep your head on a swivel.

Premarket names:

BABA ANT IPO postponed;  PDD GS upgrade; BHC earnings beat; PLUG LI momo continuation; Weed stocks CGC TLRY ACB; SEDG earnings miss ENPH sympathy; ANET W earnings beat; JMIA momo; Oil related stocks, financial stocks, european stocks

Stock Idea; PDD

Pinduoduo is a Chinese e-commerce company. Chinese stocks are strong and the Chinese economy is strong. Goldman upgrade to 123 is an additional catalyst for a move up. Ideal entry closer to 90 would be better for a swing trade.