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Swing Trade Ideas – June 19, 2020

Market View

Equity markets are strong in the USA premarket. World markets are broadly green, oil is higher and the yield curve is steeper so major factors are aligned for a potential trend day to the upside. Caveat is it’s options expiration which may lead to some volatility. S&P500 has been in consolidation all week close to the top of the expected move and a move by SPY above 315 may lead to a substantial move up or below 309 to a larger move down. Premarket the FANG stocks, financials, travel, tech are all strong i.e. all sectors aligned up for the first time this week so assuming they dont sell the open, it has all the makings of a trend day. Note it’s common for Friday of triple witching to be strong and the following week weaker.

Premarket names:

DT strong stock with GS upgrade; KMX mediocre earnings but market likes CVNA is another car sales name; Energy names FAANGM;  software names

Stock Idea; DT

Dynatrace is another in the long line of cloud enterprise names. Strong stock with a GS upgrade and 51  price target. Cloud in favor so may be a decent day trade or swing idea with a strong tape. Look for dip to enter.