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Swing Trade Ideas – June 29, 2020

Market View

USA markets are bouncing in the premarket led by cyclicals.  Europe is green and Asia is red so mixed international markets. Oil is higher, USD lower and yield curve is slightly flatter so positive backdrop for equities. Financials are stronger which gives the advantage to the Russell2000 and DJIA over the Nasdaq. FB is down in the premarket which weighs on the Nasdaq but otherwise tech stocks look and semis have some mild strength.  SPY 300 and SPX 3000 are major gamma levels which may provide downside support. USA covid case rate of change remains a hot topic. No major earnings or econ data premarket so a lack of catalysts to drive the markets today with alot of data later in the week. Seasonally the markets are strong into the July 4 holiday.

Premarket names:

BA go ahead to test 737max; FB 160 companies pledged to not buy ads for July will it continue?; GS upgraded airlines; CHK chapter 11; GILD released Remisdir pricing; RTX contract

Stock Idea: BA

BA is up on the news that FAA has given permission for test flying the 737Max It will be months before permission is given for airlines to use the aircraft but a positive step. There are still issues with longer term demand for aircraft so view this as a short term trade. Volume by price resistance at 185.6 and > 190 room to 240. . BA is a major holding in the JETS ETF which may get a bump from GS upgrades to airlines and the XAR which will also benefit from RTX contract.