Trading Plan: 14 November 2022
Nasdaq (+1.88%) continued its rally and made a breakout from the W pattern with strong volumes as in the previous day. The chances are for an uptrend continuation towards the next resistance (see the blue line in the 12000 area) and SMA200. It will be nice and healthy to have here a new base and then a breakout of the 12000 level, but we will see. As always, think in both scenarios and be prepared for a failed uptrend rally and keep an eye on the recent lows.
SP-500 (+0.92%) continued its strong reversal after the CPI news and headed toward the SMA200 with important volumes. We are already at 14% from October’s lows and I would like to see a consolidation here, digestion of the advance. Otherwise, there is a high chance to have a rapid move down after a rapid move up. Watching the resistance and support levels (see them marked on the chart).
In the news
Stock Futures Edge Down After Volatile Week.
SpaceX just bought a big ad campaign on Twitter for Starlink.
Binance halts FTT (FTX’s token) deposits.
U.S. may skirt recession in 2023, Europe not so lucky - Morgan Stanley.
UK is on the brink of recession after the economy contracted by 0.2% in the third quarter.
Sectors
Best yesterday sector: Consumer Cyclical, then Energy. Worst sector: Utilities.
Best weekly sector: Technology, then Communication Services. Worst sector: Utilities.
Best monthly sector: Basic Materials, then Industrials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 53.33
VIX (neutral under 20): 22.52
Put / Call Ratio (neutral between 0.7 and 1): 0.75
CNN Fear & Greed: 66 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 74.43%
Stocks above SMA200 (neutral above 30): 44.67%
Number of stocks that increased yesterday by more than 4%: 562
Number of stocks that decreased yesterday by more than 4%: 139
McClellan Oscillator (neutral between -125 and 100): 117.95
Earnings Reports
Noteworthy earnings reports for today:
This week's earnings:
What to trade today
Market has a good momentum right now after the good news last week regarding inflation. It is very likely to see higher prices but till then it is possible to see a pullback after Thursday-Friday big advance.
Top 20 Industry Groups:
I will watch 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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