Trading Plan: 11 November 2022
Nasdaq (+7.35%) had a solid up day with significant volumes, a wide green bar and a strong close above the EMA21/SMA50. Definitely, the good news regarding the CPI Inflation number (7.7% vs. 8.2% expected) influenced heavily the index price action. This might be a valid Follow Through day, but always consider it can be a short squeeze. Watching the marked levels (including yesterday’s gap for a possible fill).
SP-500 (+5.54%) gapped up and close above the recent resistance. Strong volumes and a strong close. SMA200 might be a key level, your bet is as good as mine if the price will pass or is rejected. Watching the marked levels.
In the news
U.S. Stock Futures Rise After Dow Surges 1,200 Points.
Inflation cools more than expected in October.
Sequoia Capital marks its FTX investment down to zero dollars.
Chinese Stocks Surge as Beijing Eases Some Covid Restrictions.
Sectors
Best yesterday sector: Technology, then Consumer Cyclical. Worst sector: Energy.
Best weekly sector: Basic Materials, then Technology. Worst sector: Energy.
Best monthly sector: Financial, then Industrials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 54.57
VIX (neutral under 20): 23.53
Put / Call Ratio (neutral between 0.7 and 1): 0.88
CNN Fear & Greed: 63 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 74.76%
Stocks above SMA200 (neutral above 30): 44.71%
Number of stocks that increased yesterday by more than 4%: 1865
Number of stocks that decreased yesterday by more than 4%: 117
McClellan Oscillator (neutral between -125 and 100): 105.34
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
Red Wednesday, green Thursday. Market seems to reverse, but many stocks have broken patterns. This 2-day V-shape reversal made it almost impossible to find low-risk entries.
I will watch: ENPH 0.00%↑ RBC 0.00%↑ KNSA 0.00%↑ HRMY 0.00%↑ MPC 0.00%↑ DCP 0.00%↑ MUR 0.00%↑.
If the market is acting well, I plan to add some small positions and increase exposure incrementally.
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.