.

Swing Trade Ideas – May 20, 2020

Market View

World markets are positive in the premarket with the USA bouncing after the late Tues selling. Asia is green and Europe is neutral, supporting USA markets. Yield curve is flatter, which is negative for financials but Russell is the leading USA index, which is often a positive. Currencies are set-up bullish with the USD slightly down and commodity currencies positive.  One should watch whether the cyclicals/value stocks continue to get a bid or there is reversion back to growth/quarantine stocks. Premarket  is being led by earnings names LOW, ADI, beaten down travel and leisure names and some semi names. Would watch the Russell for strength which may indicate a rotation to value. SPY 293 remains a key level to hold

Premarket names:

LOW good earnings; TGT earnings not great; ADI earnings; MGM LUV LVS CCL etc; ENPH SEDG solars strong (TAN etf); FB leading the FAANGM announced an ecommerce equivalent to Shopify 

Stock Idea: TAN Long

TAN is an ETF holding solar stocks. Some of my favorite names are ENPH and SEDG which have been strong and are strong in the premarket. There is a trend in institutions investing in ESG industries and reducing fossil fuel, TAN is at the top of 1yr value which may be resistance but above look for 38 as resistance.