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Swing Trade Idea – October 14, 2020

Market View

In premarket world markets are mixed with USA flat to down, Europe red; Japan green, Hong Kong red, China red, Asia red. Bond yield curve is flatter which is negative for equities and financials. USD is slightly down which is neutral. Oil is down which is negative for equities. Econ news is limited: european industrial production missed expectations and USA PPI will be released prior to the open. Covid meme is turning negative with infections increasing and LLY pausing the trial. USA stimulus is still being debated and is a catalyst in waiting. Nasdaq is the strongest USA index with the FAANGM stocks positive. AAPL phone release was a sell the news event and the price action today will be important for market direction. AMZN prime day sales data may be a market mover today or tomorrow

Premarket names:

NIO JPM upgrade LI TSLA related; GS PNC USB beat; BAC, WFC miss; CXO M&A; NFLX strong earning next week;  WDAY upgrade; DOCU strong premarket;  Semis QCOM INTC AMD NVDA;  UNH beat

Stock Idea; NFLX

NFLX is strong in the premarket and poised for a daily breakout and a potential run into the Oct20 EPS report. Streaming is a popular theme in general and DIS refocus reinforces. Nasdaq is reasserting it’s lead in USA markets and may be a good long if Nasdaq shows strength today.