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Swing Trade Ideas – June 26, 2020

Market View

USA markets are slightly down in the premarket after a rip in the last hour of trading Thursday.  Europe is positive and Asia is positive (Chinia closed) so supportive.  Oil is down slightly and yield curve is slightly flatter so a small negative. Bank stress tests were a negative for most banks as they will not be allowed to buyback shares until Q3 and dividend raises will be limited. Impact is negative for DJIA, SPY and IWM and less of an issue for QQQ. Russell rebalance will be occurring at end of day. Stocks like ZM, DDOG; CRWD, PINS, WKHS etc are being added to the Russell 3000. These stocks may run today with expectation that index buyers will need to buy them after the close. Note that these can be lower next week after the event so be careful if holding; Russell rebalance can make for a volatile day.

Premarket names:

NKE earnings miss stock down premarket  BIG earnings beat; EBAY upgrade; AVGO upgrade;  SPCE; FB customers are publicly dropping them Financials

Stock Idea: EBAY

Moving up in premarket on target raise to 57. Premarket EBAY is making an all time high. Online retail is still an in favor sector with concerns about Covid lockdown and a change in customer buying habits.   Would look for opening dips for long and be careful since there may be a lot of volatility today with the Russell rebalance.