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Swing Trade Idea – August 25, 2020

Market View

Global markets are generally positive with USA mixed, Japan green, Europe green but China red. USA markets are being led by the Russell 2000 with the lagging sectors getting a bid and the megacap tech stocks flat to slight declines. Major meme today is chatter regarding China-USA trade deal that is deemed positive. Other meme is speculation that Powell speech Wed will be positive for markets. DJIA is adding CRM HON AMGN and dropping XOM, PFE and RTX with stocks being added up and dropped down. May be an opportunity in the stocks down on the drop. Yield curve is steeper, which is good for financials;  Oil higher and USD lower is positive for equities and foreign stocks. Currently looks like another day where laggards will outperform and tech will lag.  Weakness in FAANGMT needs to be watched due to their size. Thinking range day with laggards and tech cancelling each other out

Premarket names:

AMGN HON CRM  added to DJIA  PFE XOM RTX dropped from DJIA  PANW earning but many upgrades BBY earnings beat but extended PLCE earnings miss could bounce   BA high call activity yesterday

Stock Idea; XOM

XOM is down because it’s dropped from DJIA but had popped Mon on the laggard trade. Today oil is up and laggards are in favor so looking for XOM to bounce. XOM is a major component of the XLE. Not bullish longer term – just looking for a bounce.  Would look long over VWAP with 42.25 target. May have some selling on the open.