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Swing Trade Ideas – June 1, 2020

Market View

In the premarket, the world ex-USA is green with particular strength in Asia and Europe. USA is mixed with Russell2k green and Nasdaq slightly red.  The yield curve is steeper, which benefits financials. Russell2K is financial heavy so can outperform if it continues into the open. USD is down, which lately has been a negative for US markets, in particular the QQQ. No earnings releases this morning but several software stocks are moving in anticipation of releases this week.  Chinese mfg PMI was 50.7, showing improvement but Europe still in 30s indicating waiting for a turn. Travel and Leisure, banks , oil & gas and selective tech are strong in the premarket, suggestive of another rotation day where the under performers are bought and the leaders either stagnate or weaken. If so, IWM and DJIA can outperform QQQ; but need to watch after the open.

Premarket names

LLY starting COVID treatment test on humans; CGC multiple downgrades; MRNA GS keeping $102 target; SPCE Successful launch TSLA getting some lovin; CRWD DOCU ZM MDB WORK pre-earnings run, Cramer lovin;  BYND Yum bring veggie burgers to China;

Stock Idea: BYND

BYND is a vegetarian meat company that is entering China through Yum China. BYND is fundamentally expensive so this is a momentum trade. Sales should benefit from a reopening of restaurants that serve BYND burgers.  It retraced to 120 and can potentially bounce to 140. The short interest is 12% so can move quickly as shorts cover.