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Swing Trade Idea – June 30, 2020

Market View

USA markets are flattish to down  in the premarket after a rise Monday. Europe is slightly weak and China is down. China has approved a Hong Kong security law that may anger the USA. Energy is down, USD is up and yield curve is flatter, which is negative for equities. Nasdaq is the leading US index following Micron’s positive earnings release. Semiconductors are strong generally in the premarket. WFC is forecasting a dividend cut, not unexpected but may lead to bank weakness which could become a buy the news event as the market has been pricing in a dividend cut.

Premarket names:

MU positive earnings, WDC sympathy move; XLNX increased forecast all semis are strong premarket AMD NVDA AMAT LRCX. Semis have lagged so may have nice pops. CAG earnings beat; LULU strong in premarket, bought an exercise equipment company

Stock Idea: MU

MU positive earnings release, better than forecasted earnings.  Positive discussion of 5G and gaming compensating for weaker smartphone sales. Analyst target raises with target 58-70.
Stock is up greater than expected move in premarket. Look for dips for entry with 52.50 as a first target followed by 53.23 and 54.82