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Swing Trade Ideas – April 7, 2020

Market View

Market bounce has continued overnight with SPY hitting 274.6. Markets have cleared a volume by price gap and reached the R2 daily pivot in the premarket. There is generally a good macro setup with equities around the world up;  bonds down with a steeper yield curve; USD down; and most commodities strong.

If SPY can take out the overnight high, 280 is a target with  R2 273.29 R1 269,99 levels to watch as well as Monday high of 266.98. One must be open minded to either a pullback and a breakout. Markets are quite extended from the previous 5 day trading range.

Freeport McMoran

FCX is a copper and gold miner. Copper has been in a bear market due to the world economy and China in particular slowing. China is a major buyer of copper and is returning to work. In addition the world markets are bouncing and rewarding the most beaten down companies. Long term, copper will likely benefit from electrification (e.g. EV) but short term this is a bounce. A catalyst is an upgrade of  FCX by CS this morning. Technically there is a volume by price gap to $8.86 with $10.29 being the 61.8 Fib retracement level and a major resistance level.