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Swing Trade Idea – September 25, 2020

Market View

In the premarket the global indices are broadly negative with USA, Europe, Japan and China red. The USD continues to rise, pressuring equities, foreign markets and commodities.   Energy is lower, which is not bullish for markets. Yield curve is slightly steeper which is bullish.  USA markets are all in the red with the Nasdaq slightly negative and the small caps the weakest. The FAANGM stocks are the keys for determining market direction and have been moving up in the premarket with AMZN and AAPL leading. The 3200 ES level is a key level that many are watching concerns  that a breach will bring the 200 SMA into play. The market concerns are currently the impasse on a new USA stimulus package, a rise in European Covid cases and the pending USA election.  Without resolution of the concerns, expect choppy market moves which is good for intraday trading but difficult for swing trading.  Short term trend is down but will be looking for bounces from oversold state as long as 3200 holds

Premarket names:

COST good earnings report;  AMZN streaming gaming; NVAX phase 3 trial starting; RKT upgrade; SPLK upgrade; DKNG upgrade; FLR earnings;  WKHS bounce; Cruise lines upgraded CCL RCL NCLH

Stock Idea; DKNG

Draftkings is an online gambling company that has been outperforming the broader market. Catalyst for a move today is an upgrade by Argus to 64.  DKNG is at short term resistance at 53  with resistance at 55 with 55.7 all time highs.