.

Swing Trade Idea – November 5, 2020

Market View

In the premarket global markets are storming higher as meme du jour is that Biden has won and the election uncertainty is over. The Econ news is German factory orders were negative and well below expectations and European retail sales were more negative. USA UE claims on deck and FOMC statement due. Markets don’t care about economics right now as short squeezes and FOMO buying continue in the premarket. The US dollar is sharply down which is positive for commodities and foreign equities. Bond market is not agreeing with equities as the long yield is down and curve flatter, which is negative for financials. Tech stocks and FAANGMT in particular are driving the bus again and pulling the rest of the market. QCOM is up big on earnings and should boost semis today. Alternate energy, EVs, solars are surging again and can run as Robinhooders keep buying. Markets are well above expected moves and extended by most technical metrics but can continue as long as FANG fomo rules until the economy matters. Keep your head on a swivel.

Premarket names:

UPWK earnings; LI TSLA WKHS FSK BEKE EVs;  FSLR SPWR TAN solars; PLUG BE Alt Energy QCOM earnings NVDA AMD semis; CPRI earnings; EXPE earnings; DDOG PTON FSLY CRWD BYND CHWY ZM IPO names

Stock Idea; ZM

Thesis is that ZM has technically pulled back to the 50sma and made a 61.8 Fib retracement. A Biden win will lead to more shutdowns which is good for the lockdown trade.  Tech can outperform if stimulus is reduced.  Risk is valuation and if market rotates back to the reflation trade.