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Swing Trade Idea – May 21, 2020

Market View

World markets are negative in the premarket with Asia Europe and USA negative. Yield curve is flatter which is negative. Commodities are down with the exception of oil. The European PMI data is generally better than expected but firmly in the deep recession level. USA mfg PMI, unemployment claims (2.4M)  and Powell (2:30) on tap. Debatable if the data will matter. Precious metals are down after a strong run with traders very long.  SPY 295 is short term support with 293 and 290 key levels below. Premarket is favouring QQQ, which is common when the market is leaning down and factors are leaning deflationary.

Premarket names:

SHOP partnership with FB; ACB bought Reliva;  AZN $1B from USA; FB up in premarket and may have one more day of momo; TTWO earnings beat but down in premarket, look for a bounce

Stock Idea: CRWD Long

CRWD is a cloud based security company so hits two of the factors that are in favor.  It is starting to break out of consolidation with resistance at 85.7.  CRWD is a high growth but unprofitable company so care should be taken. Would look for intraday weakness for a long. Earnings June 2,  and may see a run-up within the next week with proviso that QQQ remain strong. HACK is the security ETF and is currently strong and can be used as a barometer.