Trading Plan: 11 August 2022
Nasdaq (+2.89%) gapped up and continued higher after the news. Good volumes to the upside, it seems some institutions are coming back in. Watching the area between the recent support (12400) and resistance (13000).
SP-500 (+2.13%) had a breakout above its June resistance and closed at the highs of the day. The next step is the SMA200 which is the next target. Also, keep an eye on the old resistance which is now minor support and the recent lows (if the case of course).
In the news
The Nasdaq just exited a bear market — and the Dow left correction territory — after the July CPI reading.
Consumer prices were unchanged in July, as plunging prices for gasoline dragged the Consumer Price Index down to zero.
Fed Likely to Want Further Evidence of Inflation Slowdown.
United Airlines bets $10 million on flying taxis.
Samsung’s New $1,800 Galaxy Z Fold 4 Tests High-End Budgets.
Ethereum just pulled off its final test run ahead of one of the most important events in crypto.
The U.S. rethinks steps on China tariffs in wake of Taiwan's response.
Sectors
Best yesterday sector: Technology, then Consumer Cyclical. Worst sector: Utilities.
Best weekly sector: Basic Materials, then Real Estate. Worst sector: Consumer Defensive.
Best monthly sector: Technology, then Consumer Cyclical. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 55.28
VIX (neutral under 20): 19.74
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.97
CNN Fear & Greed: 52 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 77.38%
Stocks above SMA200 (neutral above 30): 33.12%
Number of stocks that increased yesterday by more than 4%: 709
Number of stocks that decreased yesterday by more than 4%: 102
McClellan Oscillator (neutral between -100 and 100): 125.66
Earnings Reports
Disney DIS 0.00%↑ streaming subscriber growth blows past estimates, as the company beats on top and bottom line. Bumble BMBL 0.00%↑ sales rise on higher user spending, but the online dating company trims 2022 revenue guidance and shares slide 11%.
Noteworthy earnings reports for today:
What to trade today
All sectors closed in green as investors bet on the pace of interest rate hikes slowing after data pointed to inflation peaking.
Headline Consumer Prices (CPI) were flat MoM and decelerated to 8.5% YoY, below analyst expectations. Meanwhile, core CPI, which excludes energy and food prices, rose 0.3% MoM and 5.9% YoY, matching its June pace. Since the investors are attracted to the main driver of economic growth, Technology was the “king” yesterday.
Crowdstrike CRWD 0.00%↑ made a nice gap from its consolidation area and it might continue the uptrend. A price above yesterday’s high might work. Stop Loss: 5%.
Inmode INMD 0.00%↑ had good earnings, had a good advance since then and now it consolidates again with low volumes. A price above Monday’s high might work. Stop Loss: 5%.
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.