Trading Plan: 15 August 2022
Nasdaq (+2.09%) closed above this year's resistance with average volumes. Until now the price action seems constructive and we might see higher prices. But, as always, be prepared for all scenarios.
SP-500 (+1.73%) continued higher and the price is very close to the Spring’s resistance. The volumes were not very significant, below average. This is not wrong, but an unsustainable move is easier to revert. Watching the marked channel for now.
In the news
Elon Musk says Tesla has made over 3 million cars.
Cloud stocks are rallying after a punishing start to the year as the 2022 outlook brightens.
Saudi Aramco Posts 90% Jump in Profit, Generating Billions for Kingdom.
Facebook Marketplace and DoorDash Team Up for Local Deliveries.
Bitcoin tops the $25,000 level for first time since early June.
Sectors
Best yesterday sector: Real Estate, then Technology. Worst sector: Energy.
Best weekly sector: Energy, then Basic Materials. Worst sector: Healthcare.
Best monthly sector: Technology, then Industrials. Worst sector: Consumer Defensive.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 71.59
VIX (neutral under 20): 19.53
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 55 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 80.76%
Stocks above SMA200 (neutral above 30): 37.63%
Number of stocks that increased yesterday by more than 4%: 388
Number of stocks that decreased yesterday by more than 4%: 109
McClellan Oscillator (neutral between -100 and 100): 177.74
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
Market was acting well on Friday and many stocks went higher. Thursday was not “sending” good vibes, but this is the way the market works.
What to watch today:
Murphy MUSA 0.00%↑ setups again for an entry. If the price goes above the black line, a long trade might work. Stop Loss: $282.
Harmony Biosciences HRMY 0.00%↑ is building a base here. Also, a diagonal breakout might work. Stop Loss: SMA50.
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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