Trading Plan: 1 March 2022
Nasdaq (+0.41%) continued higher with important volume and approached the EMA21. Watching the 14.100 - 14.500 area for trend confirmation.
SP-500 closed lower (-0.24%) and the price seems to consolidate around the Friday high. I will watch Friday lows and highs for the next step.
In the news
Ukraine war enters a new, uglier phase as convoy advances on Kyiv.
The U.S. cuts off the Russian central bank and the ruble collapses as new sanctions hit.
Tesla (+7.76%) shares rally on expectations that the German factory will open in March.
Crypto climbed yesterday with crypto’s total market cap reaching almost 12% over the last 24 hours.
Fed’s favorite inflation gauge up 5.2% for biggest annual gain since 1983.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Real Estate.
Best weekly sector: Utilities, then Energy. Worst sector: Financial.
Best monthly sector: Basic Materials, then Energy. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 44.41
VIX (neutral under 20): 30.15
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.95
CNN Fear & Greed: 24 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 34.84%
Stocks above SMA200 (neutral above 30): 31.35%
Number of stocks that increased yesterday by more than 4%: 482
Number of stocks that decreased yesterday by more than 4%: 108
Earnings Reports
Lucid Group is cutting its car production forecast for this year by as much as 40%. Zoom provides disappointing revenue forecast for the first quarter and full year.
Noteworthy earnings reports for today: $CRM, $AMC, $AZO, $BIDU, $BLDR, $CELH, $DPZ, $FSLR, $HZNP, $KSS, $JWN, $SE, $TGT, $URBN, $WKHS.
What to trade today
Energy / Oils, Precious materials, Solar, Defense and Cyclical showed good price action yesterday.
The big reversal in a few stocks makes it almost impossible to enter now without risking more than usual. The market is still very volatile and it is very likely to remain with these conditions due to the environment (war news, next FED meeting, inflation fears, etc.). Watching for the price action and proper conditions. Please consider using a smaller position and a tighter Stop Loss if deciding to trade.
Pioneer Natural Res. ($PXD) may advance high. It might be bought above the highs and Stop Loss at yesterday low.
Mercadolibre ($MELI) acted well during the last few days. If passed over the resistance (above the black line), it might be bought above the black line with Stop Loss at yesterday low.
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.