Trading Plan: 10 October 2022
Nasdaq (-3.80%) gapped down and continued towards the support. This is not a good sign, but… we are in a bear market. Watching the marked levels.
SP-500 (-2.80%) also gapped down and closed weak for the day. It seems the support will be tested again. If failed, there are no strong price levels, so, we might see the third leg going lower. Keep an eye on the marked levels. The psychological level of 10.000 can be touched as well.
In the news
Chinese chip stocks tumble after the U.S. calls for new curbs on high-end tech.
Rivian Recalls Nearly All of Its Vehicles Due to Loose Fastener.
Elon Musk Got More Time to Close Twitter Deal, Not More Options.
Kyiv, other cities hit as Putin orders 'harsh response' to Crimea bridge attack.
Oil falls as China demand concerns fuel recession fears.
Sectors
Best yesterday sector: Energy, then Consumer Defensive. Worst sector: Technology.
Best weekly sector: Energy, then Basic Materials. Worst sector: Real Estate.
Best monthly sector: Energy, then Basic Materials. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 38.11
VIX (neutral under 20): 31.36
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.04
CNN Fear & Greed: 22 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 21.62%
Stocks above SMA200 (neutral above 30): 22.07%
Number of stocks that increased yesterday by more than 4%: 46
Number of stocks that decreased yesterday by more than 4%: 742
McClellan Oscillator (neutral between -100 and 100): -74.20
Earnings Reports
No noteworthy earnings reports for today.
What to trade today
Even if there are some interesting patterns, the market is weak. I think the environment is still risky and my suggestion is to keep staying in cash.
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: