Trading Plan: 10 February 2022
It was good to see the volumes coming back to the market. Nasdaq advanced 2.08% and closed above the EMA21 with 81 new highs and 9 new lows. Will the next target be SMA200? Or to fill the gap? Judging by the price action, it might advance. But always be prepared for all scenarios.
SP-500 increased by 1.45% and closed above the EMA21 as well. Good price action, solid closing. Looking forward to seeing the next stop: will it be SMA50 and coming back to the uptrend channel? Very likely, probably after a 1 or 2-day rest. Anyway, be open to all possibilities.
In the news
Peloton’s meeting to introduce its new CEO was crashed by angry former employees.
Salesforce co-CEOs Marc Benioff and Bret Taylor spoke about the company’s vision for an NFT cloud service, according to people with knowledge of the matter.
Samsung launches new Galaxy S22 smartphones and Tab S8 tablets to take on Apple
Microsoft is reportedly in talks to buy Mandiant, a cybersecurity firm.
Sectors
Best yesterday sector: Technology, then Communication Services. Worst sector: Consumer Defensive.
Best weekly sector: Consumer Cyclical, then Basic Materials. Worst sector: Communication Services.
Best monthly sector: Energy, then Basic Materials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 62.54
VIX (neutral under 20): 19.96
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.91
CNN Fear & Greed: 40 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 38.76%
Stocks above SMA200 (neutral above 30): 34.01%
Number of stocks that increased yesterday by more than 4%: 558
Number of stocks that decreased yesterday by more than 4%: 67
Noteworthy Earnings Reports / Events for today
Twilio soared 20.31 % following a huge sales beat and ambitious quarterly expectations. Revenue grew 54% YoY. Disney beat on the top and bottom lines, boosting the stock by a total of 10.19% for the day. Canopy Growth traded 15.34% higher, putting itself in positive territory for 2022. Cannabis sales fell, but an increase in the beverages and vapes sectors made up for it.
Coca-Cola (KO) stock has put in a strong outperformance against the Dow Jones Industrial Average and S&P 500 so far in 2022. Analysts are targeting revenues of $8.96 billion (+4.1% YoY) and earnings of 41 cents per share (-12.8% YoY).
Other earnings reports:
What to trade today
A very good day on yesterday with many triggered stock and beautiful advances. I recommend taking some partials (between 1/4 and even 1/2 of your position, depending on your style) from the stocks that increased more than 5%.
Growth stocks, Materials, Leisure continued higher, but if already made some buying, please consider managing them first. Other ideas that look good for today:
Upstart ($UPST) formed a double bottom and might ignite back to the upper side. If it makes a breakout above the black line can be bought. Stop Loss at 7%.
Crowdstrike ($CRWD) might break out from the double bottom. ATR and volumes are decreasing. Entry above the black line and Stop Loss at yesterday low.
Tesla ($TSLA) is looking better and better, the consolidation under the resistance is constructive and poised to ignite if the market will be fine. Look for volumes. If above the black line, the trade is possible. Stop Loss at Tuesday low.
UiPath ($PATH) shows a triple bottom and big volume on yesterday’s advance. The uptrend just started and it might continue. Entry above the black line with Stop Loss at EMA21.
Apple made all the market reverse after its exceptional earnings and future growth. Now it formed a handle and might pop up above the black line. Stop Loss at 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.