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Swing Trade Idea – October 20, 2020

Market View

In the premarket world markets are mixed with USA green, Europe green, Hong Kong red, China red and Asia mixed.  US dollar weaker and yield curve steeper is positive for equities. Latter is positive for financials and small cap index. Oil is close to flat which is  neutral but nat gas is surging. Markets will move today on the ongoing USA stimulus package which is has an arbitrary deadline of today. Markets will move intraday on rumors so be careful. Nasdaq is currently the strongest USA index and FAANGMT and will dictate direction. NFLX earnings AMC and TSLA on tap are two to watch. Financials are strong in the premarket as are commodities so breadth should be broad at the open. Expect short covering at the open and will be watching to see if buyers continue after the open. Earnings reports are generally positive and supportive to higher prices today.

Premarket names:

WDAY FTNT upgrade;  UBS PG PNR TRV LMT DOV earnings beat; SYF IBM earnings miss; MRNA ; Travel&Leisure CCL LUV UAL AAL; FCX copper up; INTC NFLX TSLA earnings this week; China VIPS, JD

Stock Idea; PINS

Pintrest is reporting earnings Oct 30.  Social media stocks have been strong possibly since anti-trust discussion involving FANG stocks has started. SNAP is another name that has been moving. High call activity in the name.  Look for intraday pullbacks for entry.