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Swing Trade Ideas – May 12, 2020

Market View

Ahead of the open, USA markets and European markets are positive but China is negative. Chinese govt CPI and PPI data was below lowered expectations and indicative of deflation and economic weakness. The USD is lower, oil higher which is positive but the yield curve is flatter which is  negative. In the premarket there is some strength in the energy, gold miners and travel names, which were sold yesterday.  Yesterday the market was bifurcated with strength in the FANG and healthcare but otherwise general weakness. The SPY expected range  for the week is 290-300 with 295 a key resistance level. In the premarket SPY is at Monday’s high after the usual run up from 3am. Expecting a fade with alternate thesis of a test of 295, which is a key level.

Premarket names: 

DDOG earnings beat and upgrades; DT earnings beat; BNTX virus PTON online medicine;  BYND veggie burgers; Energy names; Travel and Leisure; Gold Miners

Stock Idea: DDOG

Datadog provides an analytics platform for cloud based companies. The company reported high revenue growth and beat on revenue, earnings and increased the outlook. The stock has had a huge run into earnings but lately the market has overreacted to the upside if a company has good earnings. Analysts are chasing the stock as they like stocks with growth in this sector.
View it as a day trade on a pullback, ideally to 20ema on 5min or vwap.