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Swing Trade Ideas – April 30, 2020

Market View

Markets are soft ahead of the employment report and USA open. European econ data was negative with Italy in recession but Asia is positive. Oil is up and many energy stocks are positive. Small caps made a 3 standard deviation move Wed and are having the expected pullback in the premarket. The big earnings reports have been generally well received. FB, TSLA, MSFT are all up with FB and TSLA moving well above the expected move. MCD and CMCSA missed earnings and are down in the premarket. MCD could lead to softness in restaurant stocks, which have been strong lately.

Premarket names: 

Aside from the FANG names which seem too high to buy IMO, there is strength in energy stocks: MRO APA HAL SLB along with travel and leisure and beaten down names like M.

Stock Idea: SLB

SLB is an oil field equipment company that has been devastated by the drop in oil.  It is up in the premarket as oil is positive. IMO this is a longer term idea with near term risk. Given that tech and healthcare are getting back to previous highs, the market may shift into some of the cheaper sectors. Thinking of a longer term option strategy as a way to gain exposure with moderate risk that will share with BBT Option Room Members.  19.18 is a breakout level and the 50sma, which could be used by longer term swing traders.