.

Swing Trade Idea – July 16, 2020

Market View

Global markets are negative in the premarket led  by China with Europe and USA markets all red. The catalyst may be renewed USA-China tensions or increase in Covid cases. China economic data was positive but consumer spending is slow to recover. Nasdaq is the weakest USA index and the FAANGM stocks are all down. The Russell small cap index is the strongest of the USA indices.  VIX is up, energy down, yields down and the USD up,  so all factors are aligned for a negative open.  SPY 320  is a level to watch as below that there is a risk of falling towards 317 which is the top of the value region and below 316.5 which is the gamma flip level.

Premarket names:

TWTR hack of well know accounts; FB European Court Decision today on privacy; FAANGM stocks ,  Chinese names; DELL VMW spinoff chatter again

Stock Idea; DLTR

Dollar Tree is short term outperforming the market and has positive accumulation. Catalyst today is a double upgrade. Above $97.81 is a short term breakout with a volume by price gap above. DLTR should do well with a slow economy. Other names in the space are DG and BJ, which has been very strong and worth looking at.