Trading Plan: 12 July 2022
Nasdaq (-2.26%) lost its EMA21 and might: 1) consolidate to finish the W pattern and make a breakout above ~11,700, or 2) test the recent lows. Hard to identify a trend, no forecast, just wait for the price action for more clues.
SP-500 (-1.15%) made a red candle with below-average volumes and lost its EMA21 line as well. It might have been a channel line visit and the downtrend to continue and we might see lower prices. Let’s wait for more clues, now it is too early to anticipate a direction.
In the news
Global Investors Dump Bonds of Chinese Banks That Lent Heavily to Russia.
Gas Station Owners, Blamed When Prices Rose, Face Risks as Prices Fall.
Twitter says Elon Musk's move to end the deal is "invalid and wrongful".
“3AC” crypto hedge fund (10 billion in assets) collapsed and dragged many investors down with it.
Amazon’s smart grocery carts are coming to some Whole Foods stores.
Sectors
Best yesterday sector: Utilities, then Consumer Defensive. Worst sector: Consumer Cyclical.
Best weekly sector: Technology, then Communication Services. Worst sector: Energy.
Best monthly sector: Healthcare, then Consumer Defensive. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 27.85
VIX (neutral under 20): 26.17
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.91
CNN Fear & Greed: 27 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 30.59%
Stocks above SMA200 (neutral above 30): 16.56%
Number of stocks that increased yesterday by more than 4%: 91
Number of stocks that decreased yesterday by more than 4%: 418
McClellan Oscillator (neutral between -100 and 100): -20.52
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
Difficult time in this news-driven market. Many stocks that broke out during last week face now (big) red candles.
Still holding a 1/2 position of LNTH 0.00%↑ and I will check the last week's stocks from the Trading Plans. No plan for extra trades today.
If trading, you may consider using a 1/2 or even 1/3 position to test. Consider also using tighter stops as well.
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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