Trading Plan: 14 July 2022
Nasdaq (-0.15%) closed almost flat, but the morning deep was bought sending the price in the previous close area. It seems a new higher low is formed and the actual downtrend line is approaching, so these are the key level to watch for now: the SMA50 area and the recent lows.
SP-500 (-0.45%) gapped down in the morning and reversed during the day from the previous low. We are still in a downtrend and until we see money entering the market, there are more chances to see lower prices. If this support is broken with volumes, the market might become more bearish.
In the news
Copper prices are signaling that investors are bearish on the economy, a strategist says.
Richard Branson takes a stake in Lightyear, a start-up hoping to become Europe’s answer to Robinhood.
The Consumer Price Index rose 1.3% in June alone, bringing the last year's price gains to a sizzling 9.1% — the fastest annual pace since November 1981.
Stocks Decline as Inflation Accelerates.
Hot Inflation Report Puts Pressure on Federal Reserve.
Sectors
Best yesterday sector: Consumer Cyclical, then Energy. Worst sector: Communication Services.
Best weekly sector: Energy, then Utilities. Worst sector: Communication Services.
Best monthly sector: Healthcare, then Consumer Defensive. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 27.85
VIX (neutral under 20): 26.82
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.04
CNN Fear & Greed: 24 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 27.97%
Stocks above SMA200 (neutral above 30): 15.55%
Number of stocks that increased yesterday by more than 4%: 218
Number of stocks that decreased yesterday by more than 4%: 134
McClellan Oscillator (neutral between -100 and 100): -30.42
Earnings Reports
Delta DAL 0.00%↑ posts profit despite a jump in costs, vows to improve reliability after airline ‘pushed too hard’.
JPMorgan Chase JPM 0.00%↑ will unveil its second-quarter results ahead of Thursday's open. Analysts, on average, expect JPM to report second-quarter earnings of $2.94 per share, down 22.2% on a year-over-year basis. Revenue is projected to arrive at $32.0 billion (+6.7% YoY).
Other noteworthy earnings reports for today:
What to trade today
Even if there are some patterns in the top industries, the market environment is not the greatest. Also, some growth stocks seem they want out of Weinstaien Stage 1.
I will watch some and maybe I will make test buys, but I do not intend to be in full position.
United Therapeutics UTHR 0.00%↑ is at ATH. A very good green bar ignited from the EMA21. It can be bought here in the highs with a Stop Loss at 5% (a retracement is likely).
H&R Block HRB 0.00%↑ is consolidating at the highs with low volumes and stays patiently above the EMA21. A new breakout above the black line might work. Stop Loss at EMA21.
Intellia Therapeutics NTLA 0.00%↑ formed a bull flag and the price seems ready for a breakout. Stop Loss: 5%.
Doximity DOCS 0.00%↑ made higher lows and it consolidates at a resistance level. A breakout above the black line might send the prices higher. Stop Loss: 5%.
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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