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Swing Trade Idea – July 27, 2020

Market View

Global markets are mixed globally: USA is green led by Nasdaq and FANG; China is slightly red and Europe is slightly positive. Note the international markets quoted in their home currency, the lower USD can make them green in USD. The USD is notably lower helping commodities including gold and USA stocks in USD. Yield curve is flatter with yields becoming “oversold”which is negative for financials and Russell2000. Long gold, Euro and bond trade is crowded and runs risk of reversal. The meme du jour is MRNA starting a 30k person phase 3 trial which is positive for markets and China-USA tension which is a negative. Aside from USA core durable goods, there are few catalysts today.  It appears that the opportunities are in the Nasdaq and will be looking at FAANGM stocks for potential bounce continuation into earnings but open to the idea that the selling can continue.

Premarket names:

MRNA starting phase 3; INTC bounce, will it last?;  AMD and TSMC for resumption; SPCE ; Gold and gold miners; Euro; Bonds

Stock Idea; AMZN

AMZN has dropped > 6% from recent highs and with earnings this week, a bounce is likely.. Premarket AMZN is strong helped by an upgrade to 3600. Recent analyst targets have been 3500- 3600. Look for AMZN continuation above 3103 for long.  2930 is support that needs to hold. Would for dips to 20ema or vwap for a long and monitor Nasdaq100 strength for support.