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Swing Trade Idea – July 14, 2020

Market View

Markets are mixed with the USA bouncing in the premarket but Europe and Asia in the red. Europeans are still discussing a recovery plan; Singapore’s economy had a huge contraction; and California has moved back in opening up – all negatives.  Yield curve slightly steeper is positive for equities and financials but oil lower negative as OPEC discusses increasing production. USD currently flat is neutral. Financials are higher after JPM, C, WFC reports which will help the SPY, DJIA.  FAANGM are currently higher in the premarket, suggest watching the behavior on the open. USA markets could follow the ROW so keep your head on a swivel.

Premarket names:

JPM C  earnings financials in general including credit cards ; MRNA BNTX, PTON, ROKU. CODX, NVAX – virus quarantine playbook

Stock Idea; JPM

JPM had a good report with trading revenue higher than expected by analysts (but shouldn’t have been a surprise). Reserves increased to $8B and provision for credit losses to $10B. Dimon did mention that there is still large uncertainty.  JPM may move higher as shorts cover with 102 a target, which is the premarket high. Caveat is it will move with the S&P500.  Suggest also watching MS, yesterday’s suggestion,  which reports Thursday along with GS.