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Swing Trade Idea – August 21, 2020

Market View

Global markets are generally weak with USA market red, Japan red, Europe red but China and Asia ex-Japan green. European PMI data was weaker than expected indicating that the post-Covid recovery is slowing. Yield curve is flatter, USD higher and energy lower which are all negative for equities. Commodities are generally lower with the higher USD.  The FAANGMT stocks, which have been levitating the USA large cap markets are weak with only AAPL, TSLA green and MSFT leading to the downside.  Financials are weak with the flatter curve and the financial heavy IWM.  SPY range expected to be 335-340. Watch the FAANGMT stocks to determine market direction. SPY below 330 can lead to larger moves to the downside.

Premarket names:

KEYS 5G name beat earnings and upgraded; DE earnings beat; TSLA as usual; ZM earnings run; PFE BNTX  premarket strength; FL beat, buyback, dividend restart  but fading; PDD earnings beat but sold off look for a bounce

Stock Idea; KEYS

Keysight is a wireless testing company in the 5G space. It beat earnings and received upgrades and target raises with 127 price target. Large pop but dropping as the overall market pulls back. Potential swing candidate if market bounces today.