.

Swing Trade Idea – October 07, 2020

Market View

In the premarket world markets are positive with USA markets green, Europe green, Japan green, China green and Asia green.  Yield curve is steeper, which is positive for financials and small caps. Oil is lower, which is a negative for markets. USD is flat, which is neutral. USA markets are being led by small caps but there is general strength across major sectors. Today, like yesterday will be news driven. Markets dropped Tues on a tweet from WH that stimulus talks were off. They have been resuscitated by tweets from WH that airline bailout and $1200 direct payment to people will be approved. Pre-market the airlines, financials and FAANGMT stocks are all bouncing.  There is a probability of a short covering pop at the open that could be sold or continue to run. Keys are the direction of the USD, bonds and FAANGMT stocks. Currently bonds and FAANGMT are positive.  Fed minutes will be released today 2pm EDT plus 2 Fed heads so be careful in the afternoon. There will be more stimulus tweets that may help or harm so keep your head on a swivel.

Premarket names:

LEVI beat;  UAL/AAL/DAL/LUV/JBLU  bailout $ maybe; WDAY upgrade; semis NVDA QCOM AMD; Momo names BYND APPS CPRT CSIQ CRWD BE  DKNG secondary priced $52; EV & lithium WKHS NIO TSLA LTHM PLL;  IPO names PLTR PTON SPCE RKT CRWD

Stock Idea; PTON

PTON is  technically strong and is not correlated to the large cap indices which are being gyrated by news.  One should look for short term pullbacks for a long entry. Speculative. Analyst targets range from 109-138.