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Swing Trade Idea – July 06, 2020

Market View

World markets are all positive led by a massive move in Chinese markets. Shanghai composite jumped most since 2015 apparently from comments by the government media that the bull market is more important than ever. European markets are strong, USA markets are strong in the premarket. USD is lower, and the yield curve is steeper which is positive for markets. Pre market most stocks are up with good breadth and outperformance by financials and small caps. SPY is back to Jun16 highs with potential to breakout to higher (320 target) or pullback towards 315 high gamma level. One should note that today’s move is in the absence of any meaningful data – momentum can continue but profit taking is a possibility. Berkshire investment in D is boosting the stock and XLF; however D dividend cut is negative for D.

Premarket names:

BRK investing in D $9.7B cutting  D dividend; GPS Kanye; REGN phase 3; GILD/Mylan  Remdesvir approval;  DUK $2B right-off combined with D divi cut, negative for Utes;  Non-Carbon energy and vehicles NIO PLUG BLDP TSLA NKLA

Stock Idea; QCOM

QCOM is the leading non-Huawei 5G technology provider.  UK is reconsidering using Huawei in their network and the USA is leaning on countries to keep out Huawei. 5G is being deployed and will continue over many years. QCOM has broken out on the weekly chart and a potential longer term investment. Shorter term, breakout with target of $96. Earnings Jul 29.