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Swing Trade Idea – June 2, 2020

Market View:

In the premarket, the world is green with the USA, Europe and Asia all up. USA indices are led by small caps. USA markets dropped after the close Mon on discussion of the military being deployed to prevent rioting. The 4am futures buyers have taken the markets higher. Macro factors are favourable with the yield curve steeper, oil and commodity currencies higher.  Within the USA, premarket led by travel & leisure names, banks, REITS and  smaller software names reporting earnings this week.

Premarket names:

CRWD DOCU ZM MDB WORK, CLDR  pre-earnings run. Energy, Travel and Leisure and banks all strong. GAN, VTIQ and DKNG day trade stocks.

Stock Idea: O

Realty Income Corporation is a retail REIT which has been  beaten down with the shutdown.  REITS are showing some recent strength as the economy reopens. O reported that it collected 83% of its rent in April.  It pays a 4.95% dividend and debt is not high for a REIT. It’s a member of the IBD50 which increases visibility. Up 1% in the premarket, it is entering a volume by price gap that can lead to larger moves.