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Swing Trade Ideas – December 21, 2020

Market View

In the premarket world markets are weak with USA red, Europe red, Japan red, Hong Kong red, China red and Asia red.  US dollar has bounced to 90.5 which is negative for equities and commodities. Yield curve is flatter with long yields lower which is negative for small caps. Competing memes are the stimulus package agreement which is good for reopening stocks; a new Covid strain in UK leading to further lockdown; and USA banks allowed to buy back shares. Latest Covid concern is that the vaccines will not work on the latest strain or not on future mutations. The week post quarterly options expiration is often volatile and the addition of TSLA to the S&P500 should be adding some volatility to the mix. USA markets are being led by large caps with financials leading. Reopening companies such as airlines, cruise lines, DIS are being hit after a big run with the latest Covid meme a catalyst to take profit. S&P 500 dropped with the European open, bounced 50% back and need to be prepared for both a continuation up or a retest of the lows and potentially lower. Watch the FAANGM and financials, the latter which is supporting the S&P.

Premarket names:

NKE earnings Friday; AJRD bought by RTX; Bank buybacks JPM BAC C WFC MS;  Strong premarket ZM PIC TTCF LAZR FUBO MGNI  BNTX NVAX PTON TDOC CVAC

Stock Idea; FUBO

FUBO is an over the top TV broadcaster that streams on a regular schedule. FUBO streams sports, news and entertainment. One advantage is that they provide both European and USA sports and possibly moving into sports betting. High option activity and high short interest are catalysts.