.

Swing Trade Idea – September 23, 2020

Market View

In the premarket the global indices are generally positive with the  USA, European, Japanese, Chinese and Asian markets positive. European PMIs were mixed with mfg exceeding and services missing. USD is slightly higher which is  generally negative for gold and commodities and usually equities. Yield curve is slightly steeper which can provide a boost to financials and small caps.  Premarket the USA indices are muted but positive with the technology sector lagging after 2 days of bouncing from oversold.  FAANGM is mixed in the premarket with AAPL and AMZN weak and the remainder muted.  TSLA is down post battery day and weighing down the Nasdaq100. TSLA is also weighing on NIO and lithium suppliers like ALB.  FAANGM has led the market bounce and today it looks like the market is rotated to the beaten down stocks like financials, airlines,and REITS.   We have seen this rotation before but it doesn’t tend to last. Today would keep and eye on the USD and FAANGM stocks.  A rising USD and weak FAANGM can lead to general market weakness.

Premarket names:

TSLA post battery day selling NIO, LIT ALB affected;  NKE beat UAA FL DKS SKX sympathy; GIS beat; JNJ phase 3 Covid trial; LULU starting buyback; TWTR upgrade; SFIX earnings; Gold and Silver Miners; ACB miss hurting Cannabis space

Stock Idea; TWTR

TWTR has broken out on weekly chart  and today has received an upgrade to 59 by  Pivotal which is an additional catalyst. High call activity the  last few days indicates a bullish tilt. Huge move Tues so would like for a pullback for entry. Short term target 44.