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Swing Trade Idea – December 9, 2020

Market View

In the premarket world markets are positive  with USA mixed, Japan green, Europe green, Hong Kong green and Asia green. US dollar is down which is bullish for equities and commodities. Yields curve steeper is positive for financials and small caps but not large cap tech and gold miners.  The premarket is setup as reopening day which means the airlines, banks, energy, highly shorted and financially shaky companies are outperforming. FAANGMT are neutral and if this continues into the open, the Nasdaq and S&P500 will underperform the Russell 2000. The USA indices are at the top of value ranges which could lead to a morning pullback, especially if FAANGMT has weakness. TSLA has been trading  higher flow than the SPY so a key indicator to watch. UK has reported some reactions to the PFE vaccine, stock is up but any further negative news would be a problem.  Doordash DASH will start trading today if one is looking for excitement. 

Premarket names:

FEYE Cyber attack could be a bounce play; CHWY beat buyers may come in, watch homebuilders; Bitcoin pull back GBTC RIOT MARA MSTR  EV&Alt Energy SOLO FCEL LI KNDI LTHM NIO LIT RIDE PLUG BLDP XPEV TSLA SPACs are hotWPF THCB DMYD HCAC BFT SAMA … China PDD BIDU WB NIO BABA  Upcoming Earnings LULU ORCL COST ADBE  Reopening Energy Airlines Financials

Stock Idea; LULU

LULU is reporting earning Dec  10 AMC

 moving up in the premarket and possibility for a run into earnings. Breakout level is 375.60. One could also look for a pull on the open for a long. LULU has historically been a popular RH name