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Swing Trade Idea – August 05, 2020

Market View

Global markets are in the green. Asia and Europe are leading with DJIA and Russell leading in the USA. The USD is down, yield curve is steeper and energy is up, which is positive for US markets.  There is a scarcity of catalysts, aside from momentum, my guess is stimulus expectations and perhaps positive phase 1 results from NVAX which boosts the vaccine hope for another day. The USD decline, which is linked with unprecedented USA govt spending can continue to drive up asset prices. It should be noted that the rise in the S&P500 in the premarket is equal to the drop in the USD.  It looks like a rotation day in the premarket. The laggard sectors like financials, energy, small caps, travel&leisure are getting a bid. FAANGM are supportive to markets and as long as these are not sold, the markets can rise. Semis are strong in the Nasi. S&P500 is very extended from short term value so look for a pullback alternate thesis is a continuation up with 332.5 as a target.

Premarket names:

DIS lost $5B but up; TDOC & LVGO merger; NVAX phase 1;  SQ, RGEN, CVS earnings beats; AMD NVDA BAC ONEM gold miners; energy names ;

Stock Idea; ONEM

ONEM is an idea based on the TDOC LVGO merger.  ONEM is also in the business of digital health services.  It is up in the premarket, likely based on the merger. My thinking is a reduction in companies in the space is a positive, though one could also view the merged company as a larger competitor. ONEM pulled back to support in Jul and setup for a run into earnings Aug 12.
Hourly breakout at 32.75. Speculative stock.