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Swing Trade Idea – August 17, 2020

Market View

Global markets are mixed in the USA premarket. USA markets are green led by the Nasdaq. Europe, Japan are slightly weak but China is green. Yield curve is flatter with long rates lower,  and oil is lower which is negative for markets. Precious metals are higher, following rates. USD is slightly lower which is positive for equities and commodities. Virus meme is not improving as Europe is seeing cases increase and there is discussion of a mutated form. USA stimulus is still pending and China-USA trade discussions are postponed so no catalysts yet.  Big news item is Buffet’s 13F indicating that he bought GOLD, KR, STOR and reduced financials including WFC. Sheep are chasing Buffet today. SPY is in consolidation with 338-335 the range until it isn’t. China stocks are in play with JD beating and many names reporting this week. Nasdaq stocks are stronger in USA.

Premarket names:

GOLD KR STOR  Buffet boost  WFC Buffet sold BABA Trump negative  

Stock Idea; PDD

JD reported strong earnings and PDD is reporting Aug21 BMO. Expecting a run into the report. BABA, VIPS, GSX, BZUN all reporting this week. Risk is the US-China tension. Breakout level 91. Could be dip buy if sells off on the open.