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Swing Trade Idea – July 20, 2020

Market View

Global markets are generally slightly positive with Asia and Europe up modestly and USA flattish with Nasdaq positive and other indices flat to down. COVID dominating the news with CA and FLA data concerning. Big news today is the vaccine phase 1 results from AZN and the European stimulus plan due today.  European stocks have priced in the stimulus so will be negative if it falls through. Yield curve is flatter which is positive for long bonds and negative for financial stocks. Energy down is also negative for equities. USD is close to neutral.  Set-up is for a range bound day but with low volume, news can spark a sharp move. MSFT and AMZN were upgraded and are up in the premarket. MSFT and TSLA are reporting this week – both are positive and may run into earnings if market cooperates. Vaccine hype is boosting BNTX PFE MRNA AZN and drugs in general. Semis are getting a bid in premarket – INTC is reporting this week – NVDA and AMD are the trader faves. China internets are bouncing – JD TME BABA et al.

Premarket names:

DBX upgrade AZN BNTX PFE MRNA MSFT AMZN TSLA earnings run

Stock Idea: MSFT

MSFT is reporting earnings this week and received price target raises to 240 and 215 today. Expecting a run into earnings but will need cooperation from the Nasdaq. MSFT has fallen below the 20ema and could consider longs above using lower time frames to validate. Earnings Jul 22 AMC.