Trading Plan: 13 April 2022
Nasdaq (-0.30%) tried to go higher in the morning and filled yesterday's gap, but during the day the price went lower and closed in red. All the fears in the market are present and we might see the price going even lower. But… just be prepared for all scenarios. As always.
SP-500 (-0.34%) tried to stay above the SMA50, but finally, it went down and closed under it. The energy sector was not enough for the index. There are no intermediate supports until the February lows, be careful.
In the news
The consumer price index (CPI) in the United States jumped 1.2% last month, its largest gain in 16.5 years, reinforcing the argument for the Federal Reserve to raise interest rates by 50 basis points in May.
U.S. Inflation Accelerated to 8.5% in March, Hitting Four-Decade High.
Russia’s invasion pushed global food prices to record high.
Chinese markets sink as lockdowns and inflation linger.
EV maker Lucid debuts its latest Tesla rival, a high-performance luxury sedan with a 446-mile range.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Financial.
Best weekly sector: Energy, then Consumer Defensive. Worst sector: Technology.
Best monthly sector: Consumer Defensive, then Energy. Worst sector: Industrials.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 83.41
VIX (neutral under 20): 24.26
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 46 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 45.46%
Stocks above SMA200 (neutral above 30): 33.97%
Number of stocks that increased yesterday by more than 4%: 203
Number of stocks that decreased yesterday by more than 4%: 177
McClellan Oscillator (neutral between -100 and 100): -54.90
Earnings Reports
Delta Air Lines ($DAL) entered 2022 shaking off headwinds from the omicron variant of COVID-19, only to encounter spiking oil prices thanks to Russia’s attack on Ukraine. Analysts, on average, are projecting a per-share loss of $1.32 — a significant improvement over the $3.55 per-share loss the airline incurred in Q1 2021. On the top line, the consensus estimate is for $8.8 billion, +124.7% YoY.
UnitedHealth Group ($UNH) has shown resilience during a rough start to 2022 for the broader market. Analysts are targeting earnings of $5.37 per share (+1.1% YoY) and revenue of $78.8 billion, a 12.2% improvement over the previous year.
Other noteworthy earnings reports for today:
What to trade today
Many stocks tried to reverse the downtrend in the morning (while the growth stocks surged by 3–8%!) but after the inflation news, mostly sold off giving more than half of the profits back or even closed red.
I will keep on my watchlist the already presented stocks: $ASAN and $ETSY, not triggered yet.
Upstart ($UPST) might go lower if the price break the support marked here by a black line. Stop Loss: $91.
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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