Trading Plan: 12 August 2022
Nasdaq (-0.58%) tried to conquer the resistance, but it was rejected and the price was sent back below yesterday’s close… with big volume. After this price action, it seems there are more chances in the following day(s) for the price to close yesterday’s gap up than breaking the resistance. Watching the marked channel lines on the graph.
SP-500 (-0.07%) closed flat, but after forming a topping tail. It is possible to have a short-term top here and we might see a consolidation here for the next leg (up or down). Watching the marked levels on the graph.
In the news
Pinterest’s plan is to better compete with TikTok, Shopify and Instagram.
Disney is raising prices, but this time, don’t blame inflation.
Ethereum just pulled off its final test run ahead of one of the most important events in crypto.
Gas prices drop under $4 a gallon.
Wholesale inflation fell 0.5% in July - another sign that price increases are slowing.
Sectors
Best yesterday sector: Energy, then Financial. Worst sector: Healthcare.
Best weekly sector: Energy, then Basic Materials. Worst sector: Consumer Cyclical.
Best monthly sector: Technology, then Industrials. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 71.59
VIX (neutral under 20): 20.20
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.92
CNN Fear & Greed: 53 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 79.07%
Stocks above SMA200 (neutral above 30): 34.26%
Number of stocks that increased yesterday by more than 4%: 453
Number of stocks that decreased yesterday by more than 4%: 215
McClellan Oscillator (neutral between -100 and 100): 132.28
Earnings Reports
Rivian RIVN 0.00%↑ posts second-quarter revenue above estimates, but expects a wider loss for the year.
Noteworthy earnings reports for today:
What to trade today
Many breakouts faded or failed, it seems investors thought again about the inflation and macroeconomic situation.
So, since there is no evidence of money entering the market (in fact, yesterday the flow was the opposite), it is better to wait.
No plan to trade today.
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.
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