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Swing Trade Idea – November 25, 2020

Market View

In the premarket world markets are generally weak in the premarket with USA mixed, Europe red, Japan red, Hong Kong red, China red and Asia red. US dollar is slightly negative which is a positive but should be watched as a rise is negative. Yield curve is slightly flatter but not much of a factor unless it flattens more. Today there is USA GDP, UE claims, UofM sentiment and FOMC minutes which can move markets.  NYSE breadth is statistically extremely strong, Russell2000 is statistically stretched and S&P500 is at the top of the expected weekly move so set-up is for some give back on the strongest names. The Nasdaq100 is the only positive USA index in the premarket and may be the leader today. Weakness in the FAANGMT stocks can lead to a larger move down so keep one’s eye on the FAANGMT, the US dollar and the news ticker today.  EV space under pressure, China is investigating companies.

Premarket names:

Earnings DE JWN GPS DELL HPQ ADSK ; Upgrade ZS  Bitcoin GBTC RIOT MARA BTBT MYST;  EVs China investigating   WKHS NIO LI XPEV SOLO KNDI RIDE LTHM FSR HYLN ;

Stock Idea; RIOT

RIOT is a trade on bitcoin, which has been red hot as the US dollar weakens. Currently up in the premarket, can be momentum traded above 7.19 for a breakout or wait for a pullback reversal. 50 MA on hourly has been support so roughly 6.76.