Trading Plan: 15 February 2022
Nasdaq closed flat with a Doji candle maintaining the M pattern formed during the last days. Being back to test the support at 13,800, this is a level to watch. If broken, we might see the price in the 13,000 area again.
SP-500 closed in red (-0.38%) is higher than average volumes. Even if the price made the bottom in the mid of the day and then tried to come back to the highs, the risk is present. The bottoming tail candle might suggest a reversal, but with all the uncertainties happening these days, I do think waiting patiently for a clear trend is better.
In the news
Buffett’s Berkshire bought about $1 billion worth of Activision shares before the Microsoft deal.
The U.S. closes its embassy in Kyiv, citing the ‘dramatic acceleration’ of Russian troops.
Moderna, Pfizer stocks fall as Covid omicron wave subsides in the U.S.
Intel Nears Roughly $6 Billion Deal to Buy Tower Semiconductor.
Sectors
Best yesterday sector: Consumer Cyclical, then Communication Services. Worst sector: Energy.
Best weekly sector: Basic Materials, then Consumer Cyclical. Worst sector: Real Estate.
Best monthly sector: Energy, then Consumer Defensive. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 66.8
VIX (neutral under 20): 28.33
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.09
CNN Fear & Greed: 32(Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 30.36%
Stocks above SMA200 (neutral above 30): 28.90%
Number of stocks that increased yesterday by more than 4%: 124
Number of stocks that decreased yesterday by more than 4%: 148
Noteworthy Earnings Reports / Events
What to trade today
Besides yesterday ideas ($CNQ long and $MTTR, $LCID short) which are still in place, today I am looking for some more shorts:
Zoom Video ($ZM) couldn't pass the EMA21 and it might break down. Entry under the black line and Stop Loss at EMA21.
Twilio ($TWLO) couldn't hold the advance and came back to the lows. It the market continues to weaken, the stock might be shorted under the black line with Stop Loss at EMA21.
Perficient ($PRFT) might break down. It can be traded if under the black line with Stop Loss at EMA21.
Aehr Test ($AEHR) can be shorted under the black line. Stop Loss above yesterday high.
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.