Trading Plan: 1 August 2022
Nasdaq (+1.88%) closed above this year's resistance (February’s high). Building higher and higher lows will probably help to form a new and proper base for a Stage 2 breakout (Weinstein Stage 2) above the SMA150 (Weekly SMA30) - or above SMA200 as many investors consider this level as “newer and more accurate”.
SP-500 (+1.42%) had a strong advance towards February resistance and closed strong with above-average volumes. Watching the already mentioned area and the recent low (EMA21 and SMA50 level). It is likely to have a retracement on the following day(s) and it will be constructive to be above the recent support.
In the news
Alibaba BABA 0.00%↑ shares fell after being added to the SEC’s delisting watchlist.
Gold and Silver had one of their strongest weeks of the year on the back of increasing recession fears and a weaker U.S. Dollar.
Falling Food Prices Ease Upward Pressure on Global Inflation.
he U.S. Is Investing Big in Chips. So Is the Rest of the World.
Sectors
Best yesterday sector: Energy, then Consumer Cyclical. Worst sector: Healthcare.
Best weekly sector: Energy, then Utilities. Worst sector: Healthcare.
Best monthly sector: Consumer Cyclical, then Technology. Worst sector: Basic Materials.
Top 10 industries:
Sentiment
NAAIM (weekly, neutral between 70 and 90): 47.21
VIX (neutral under 20): 21.33
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.99
CNN Fear & Greed: 42 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 70.21%
Stocks above SMA200 (neutral above 30): 28.78%
Number of stocks that increased yesterday by more than 4%: 306
Number of stocks that decreased yesterday by more than 4%: 181
McClellan Oscillator (neutral between -100 and 100): 182.15
Earnings Reports
Chevron CVX 0.00%↑ and Exxon XOM 0.00%↑ post record quarterly profits as commodity prices boom. Procter & Gamble’s PG 0.00%↑ earnings were a cent below expectations, and revenues barely beat by $0.12 billion.
Noteworthy earnings reports for today:
And the earnings visual for this week:
What to trade today
The market had one of the best weeks and generally, after such a rally, we might see a pullback (McClellan Oscillator is 182.15, so we are in an overbought territory).
Long (1/2 position each): ENPH 0.00%↑, HRB 0.00%↑, LNTH 0.00%↑, MCK 0.00%↑, TPL 0.00%↑.
Besides the stocks already discussed last week: LLY 0.00%↑, UFPT 0.00%↑, VRTX 0.00%↑, UTHR 0.00%↑, MRNA 0.00%↑, I will watch:
Micron Technology MU 0.00%↑ is at a key level as we might see a SMA50 - EMA21 cross while volumes and ATR are low. Stop Loss: EMA21.
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.