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Swing Trade Ideas – May 11, 2020

Market View

Ahead of the open, USA markets and European markets are negative after a large move up into the close Friday. The macro  factors are aligned negatively but would look for a  bounce as long as SPY 290 holds.  Nasdaq is the strongest index, looks like a day where strength may be bought and weakness sold. Russell2000 and financials are on the sell list today. There was no significant news to move markets so will likely continue to stay above 290 and remain in consolidation. Some USA states are opening businesses but the virus cases are not yet declining in all states so there are divided opinions on the recovery. 

Premarket names: 

UAA earnings miss – look for LULU impact – UAA may be a bounce candidate;  TSLA model 3 sales -64% in China, suing CA, discussing leaving state; ON earnings miss

Stock Idea: PDD

PDD is a Chinese online retailer demonstrating good relative strength and above resistance. Chinese economy is returning and larger China internet retailer stocks are acting well. Hang Seng is currently positive with the US markets lower. The stock had a large breakout Friday., Would consider as a long if it can hold half of Friday’s gain with the 20ema on the hourly as a reference. With the long candle Friday, support is well below which must be factored into position sizing. Note China stocks have a tendency to fade in the first hour after the open

Short interest is 6% so above average but not super high