Nasdaq (-0.95%) had an inside day with low volumes. In a way, it was expected, as today will be the FED meeting. The probability is now 82% for a 0.75% bps hike which is already high. A higher number might imply big volatility. No forecast, no anticipation, no betting, just wait for price action.
SP-500 (-1.13%) made a bottoming tail candle with above-average volumes. Watching the new lows; the 3840 area is a real test now, if it doesn’t hold, we might see lower prices.
In the news
Fed expected to hike rates by three-quarters of a point again, but its forecast may matter most.
Hertz will order up to 175,000 EVs from General Motors, including BrightDrop vans.
Gap eliminating about 500 corporate jobs as sales fall.
Spotify Offers Audiobook Service With 300,000 Titles.
Putin announces partial military mobilization for Russian citizens.
Sectors
Best yesterday sector: Consumer Defensive, then Energy. Worst sector: Real Estate.
Best weekly sector: Consumer Defensive, then Financial. Worst sector: Real Estate.
Best monthly sector: Energy, then Utilities. Worst sector: Technology.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 33.86
VIX (neutral under 20): 27.16
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.98
CNN Fear & Greed: 34 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 21.54%
Stocks above SMA200 (neutral above 30): 25.23%
Number of stocks that increased yesterday by more than 4%: 84
Number of stocks that decreased yesterday by more than 4%: 360
McClellan Oscillator (neutral between -100 and 100): -105.12
Earnings Reports
Lennar LEN 0.00%↑ will report its fiscal third-quarter results after today's close. Analysts are expecting the homebuilder to report earnings of $4.91 per share, up 8.6% year-over-year (YoY), and revenue of $9.0 billion, a 30.4% increase over its year-ago figures.
Noteworthy earnings reports for today:
What to trade today
How to trade in turbulent times? Sit on your hands, there are no trends, no patterns, no low-risk entries, and no good environment, so, do not trade!
Negative news today regarding a possible escalation in the Russia-Ukraina War, FED meeting, Index prices under all main averages… what's the worst that could happen ?!
This is a rhetorical question, of course. It is very risky to play the market in these conditions. I hope to understand that waiting and patience are very important now. The objective is to trade when more odds are with us not against us, to preserve the capital and to be able to trade when a new trend begins.
Remember:
Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.
In order to learn more about trading, you may want to read: