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Swing Trade Ideas – May 4, 2020

Market View

Markets are again negative today with world equity markets aligned to the downside. Lower yields with a flatter curve;  higher USD;  lower oil prices and lower commodity prices are all aligned for lower equity prices.  Financials and companies dependent on economic growth should be weaker at the open. Warren Buffet revealed that he sold his 10% stake in the 4 largest USA airlines.  This is leading to airlines plus the travel related companies down along with suppliers to the airlines like BA.  Many tend to follow Buffet in and out of stocks.  Few companies are up premarket:  NEM, GOLD, ATVI are up ahead of earnings this week. CGC is up with STZ increasing their stake to 38%. SPX should have gamma support at 2780, 2730 and resistance at 2860.

Premarket names: 

GOLD, NEM, KGC,  ATVI, TDOC, CGC

Stock Idea: ATVI

Activation Blizzard  is a gaming stock with earnings this week. The stock has been under accumulation and is performing similar to the market.  Gaming is one of the sectors that should be doing well with the quarantine.  Looking for a potential positive move into EPS May5 AMC.  Resistance / breakout level 68,32. Can be traded for earnings with options. Trade discussed with  BBT options room members.