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Swing Trade Idea – October 16, 2020

Market View

In the premarket ahead the world markets are generally positive with the USA indices green, Europe green, Japan red, Hong Kong green, China green, and Asia mixed.  US dollar is lower which is supportive to equities. Yield curve is slightly flatter and Oil is lower, both which are slight negatives. USA core retail sales beat expectations which is positive for markets. PFE/BNTX  said it could request emergency use approval in Nov if data from trials is positive. Positive for markets since Covid is a serious market concern. Tech and momentum stocks are leading in the premarket with the FAANGM stocks strong. Today is options expiration and many stocks are above their max pain levels so be prepared for a slow retreat after the morning pop.

Premarket names:

BNTX, PFE seeking emergency approval for vaccine Nov;  CHWY upgrade; ISRG earnings; COST upgrade; NFLX earnings next week and target raises; Solars JKS RUN CSIQ SEDG ENPH;  EVs NIO WKHS TSLA target raise and earnings next week;  China stocks BABA JD

Stock Idea; TSLA

TSLA has earnings next week which is a catalyst for TSLA to make a move today especially with Nasdaq stocks strong in the premarket.  456.6 is a key level to take out to have confidence of a breakout.