.

Swing Trade Ideas – April 13, 2020

Market Outlook

USA markets are weaker premarket after a strong move up last week. Major international markets are closed so not providing momentum into the open.

OPEC+ agreed on a 10MBPD cut which is at the lower end of expectations. Premarket oil and pipeline companies are higher, suggest watching to see if there is continuation or a sell on news as the cut does not compensate for the drop in consumption.

Last week the Nasdaq100 underperformed with the value names and small cap names outperforming. SPLV is an ETF to watch to see if a rotation is underway.

Semiconductors were negative on Thursday while the market moved up. There were several downgrades or price targets lowered of major names: TXN MU MCHP NVDA which may lead to further drops.

Stock Idea: MU

MU is a producer of semiconductor memory devices used in data centers and cellphones.

Semiconductors were showing weakness last week and there are signs of a rotation.

Analyst downgrades may provide a catalyst for lower levels.

Idea:

Short MU with target of $40

Stop 47

Ideally enter on positive bounce using short time frame chart.