Trading Plan: 11 March 2022
Nasdaq (-0.95%) showed us a higher low, average volumes and a bottoming tail candle. It will be a good sign if it can close above 13350 in the following sessions while not violating yesterday low.
SP-500 decreased by 0.43% with average volumes. For the near future, watch the Monday high / EMA21 and yesterday low. We need to see the rotation back to the growth stocks as it is hard to believe that Energy and Materials can sustain the index.
In the news
Double-digit inflation is now quite plausible.
February’s Consumer Price Index (CPI) rose to 7.9%.
Nickel trading was suspended on the London Metal Exchange after the commodity skyrocketed over 100%.
The central bank of the United States can create money to stimulate the financial sector during emergencies.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Technology.
Best weekly sector: Energy, then Utilities. Worst sector: Consumer Defensive.
Best monthly sector: Energy, then Basic Materials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 42.58
VIX (neutral under 20): 30.23
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 15 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 37.06%
Stocks above SMA200 (neutral above 30): 30.53%
Number of stocks that increased yesterday by more than 4%: 204
Number of stocks that decreased yesterday by more than 4%: 185
Earnings Reports
JD posted fourth-quarter earnings that topped analyst estimates, but revenue fell short. Rivian Automotive descended 18.25% in extended trading after losses came in wider-than-expected, and revenue fell short of predictions. DocuSign tanked 20.68% after hours despite beating on the top and bottom lines. Oracle met expectations for revenue but fell short on earnings for the fiscal third quarter.
Noteworthy earnings reports for today:
What to trade today
Solar, Basic Materials, Shipping are trending higher in this news-driven market. Since there are many igniting bars from no patterns, they are hard to trade. Do not chase. No FOMO.
$TSLA and $RUN, even if not triggered yesterday as per Trading Plan: 10 March 2022, they are still in the game.
SunPower ($SPWR) nice-looking flag, wide range bar igniting from the SMA50 and two-day constructive consolidation (low volumes for this two-day retracement). Entry: $21.30 and Stop Loss at ~5%.
Also, for shorts, the list from the Trading Plan: 8 March 2022 is still viable.
If trading, please consider using small positions and at tighter Stop Loss.
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.