Trading Plan: 1 November 2022
Nasdaq (-1.03%) made an inside day. It seems investors are waiting for more clues (probably the FED decision from this week as well). Friday’s low and high are the short-term levels to watch. Of course, the marked levels as well.
SP-500 (-0.75%) formed a nice bull flag. This small retracement might be normal as some traders take the profits after the two-day strong advance. A price above Friday’s high is very constructive. A price below Friday’s low could signal lower prices.
In the news
Shopify acquires Remix to bolster its storefront design tools.
Hong Kong's economy shrinks 4.5% yr/yr in Q3, the outlook remains weak.
China's factory, services activity skids on relentless COVID curbs.
Foxconn to Shift Some iPhone Production From Covid-Hit Plant to Other Sites.
Sectors
Best yesterday sector: Energy, then Healthcare. Worst sector: Communication Services.
Best weekly sector: Real Estate, then Utilities. Worst sector: Communication Services.
Best monthly sector: Energy, then Industrials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 53.91
VIX (neutral under 20): 25.88
Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 58 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 62.89%
Stocks above SMA200 (neutral above 30): 37.60%
Number of stocks that increased yesterday by more than 4%: 296
Number of stocks that decreased yesterday by more than 4%: 156
McClellan Oscillator (neutral between -100 and 100): 182.43
Earnings Reports
ON ON 0.00%↑ Semiconductor Registers 26% Revenue Growth In Q3 Aided By EV, Industrial End Markets.
Insurer Aflac AFL 0.00%↑ posts earnings Tuesday, Nov. 1. For the quarter, analysts expect Aflac to earn $1.21 a share (-21% YoY) on revenue of $4.58 billion (-12.6% YoY). Franklin Resources BEN 0.00%↑, home to Franklin Templeton funds and other financial products, reports earnings on Tuesday, Nov. 1. For the third quarter, analysts expect BEN to earn 67 cents a share (-46% YoY) on expected revenue of $1.92 billion (-12% YoY).
Other noteworthy earnings reports for today:
What to trade today
Not a bad day yesterday, market seems to make a pause. If the market made just a small retracement but acts constructively, a small increase in exposure might be a good idea. Of course, if the market loses the Friday low, decreasing the exposure will be the way to act.
Yesterday I made a 5% position in $DCP. Today I will watch STNG 0.00%↑. ATR declining and low volumes. A price above the black line might work. 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.
In order to learn more about trading, you may want to read: