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Swing Trade Ideas – June 11, 2020

Market View

World markets are uniformly negative due to either cautious Powell comments on the economy or an increase in Covid cases in some USA states or just some profit taking in an overbought market – take your pick, I favor the latter. Yield curve flatter which is negative for financials and hence the Russell, DJIA and S&P500 in that order. The Nasdaq is outperforming on a relative basis and likely where buying will be initiated. The financials and cyclicals are relative underperformers as are economically sensitive and have been bid up by the Robinhooders..S&P is testing gaps – watch the gap below 310 down to 308. Gamma is now negative so markets can fall quicker.

Premarket names:

MRNA phase 3 news; REGN Covid trial news; SBUX provided negative guidance

Stock Idea: Biotech

All stocks are down but too late to short and too early to buy. Biotech has relative strength and several names are positive on a weak tape. Suggestion is to consider biotech on a bounce as it can outperform, especially on Covid concerns. ARKG is an outperforming biotech ETF to consider above the 20ema on daily with 44.5 as a key level to stay above to be long.