Trading Plan: 1 September 2022
Nasdaq (-0.56%) continued its downtrend and closed weak with no signs of a pullback at the close. Still, Tuesday’s low still stands, but everything is possible. Watching the marked levels for now and looking for price action in order to get new clues to identify the next leg.
SP-500 (-0.78%) undercut Tuesday's low and closed weak. Watching the marked low for now, not a strong support. There are more chances to see a downtrend continuation. But let’s see if there will be a consolidation here before building a new leg (up or down).
In the news
Nord Stream 1: Russia shuts major gas pipeline to Europe.
China’s biggest property developer Country Garden sees profits plunge 96%.
Toyota will triple its planned investment for its first U.S. battery factory due to rising consumer demand for electric vehicles.
Bosch will invest more than $200 million into its South Carolina factory to build fuel cell stacks that will power hydrogen-powered electric commercial trucks in the United States.
Disney Explores Membership Programs Like Amazon Prime to Offer Discounts and Perks.
Job openings top 11.2 million in July, well above estimate and nearly double the available workers.
Sectors
Best yesterday sector: Communication Services, then Healthcare. Worst sector: Basic Materials.
Best weekly sector: Utilities, then Financial. Worst sector: Technology.
Best monthly sector: Energy, then Utilities. Worst sector: Technology.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 54.86
VIX (neutral under 20): 25.87
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.11
CNN Fear & Greed: 48 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 37.31%
Stocks above SMA200 (neutral above 30): 26.40%
Number of stocks that increased yesterday by more than 4%: 226
Number of stocks that decreased yesterday by more than 4%: 185
McClellan Oscillator (neutral between -100 and 100): -190.06
Earnings Reports
Lululemon Athletica LULU 0.00%↑ will deliver its second-quarter earnings report after the Sept. 1 close. Analysts, on average, see LULU reporting earnings of $1.86 per share in its second quarter, up 12.7% over the year prior. Revenue is forecast at $1.8 billion (+20% YoY).
Other noteworthy earnings reports for today:
What to trade today
It is hard to trade in this type of market, so I will wait for a better environment. There is much news on the table, more to come, everything seems risky now.
Even if some stocks show a decent setup, the overall market conditions make these probabilities look small.
I do not plan to trade today.
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: