Trading Plan: 15 July 2022
Nasdaq (+0.03%) closed flat after it tested the Wednesday low. Volumes are still below average; probably investors and traders are waiting for more confirmations. It is constructive to see the last higher low respected. Watching this new support and SMA50.
SP-500 (-0.30%) also stayed above the recent support. A breakdown under the 3730 area may send the price lower. Watching else the resistance at 3920 / SMA50 / downtrend channel line.
In the news
JPMorgan CEO Jamie Dimon “Economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy. But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity ... are very likely to have negative consequences on the global economy sometime down the road.”
Bank of America slashes S&P 500 target to ‘lowest on the Street’ after the recession forecast.
China’s GDP growth misses expectations in the second quarter.
Pinterest shares soar after a report that Elliott Management has acquired a 9% stake.
Sectors
Best yesterday sector: Technology, then Consumer Defensive. Worst sector: Basic Materials.
Best weekly sector: Consumer Defensive, then Utilities. Worst sector: Communication Services.
Best monthly sector: Healthcare, then Consumer Cyclical. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 26.74
VIX (neutral under 20): 26.40
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 24 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 26.00%
Stocks above SMA200 (neutral above 30): 14.87%
Number of stocks that increased yesterday by more than 4%: 128
Number of stocks that decreased yesterday by more than 4%: 289
McClellan Oscillator (neutral between -100 and 100): -76.11
Earnings Reports
JPMorgan Chase JPM 0.00%↑ earnings fell 28% after building reserves for bad loans, bank suspends buybacks. JPMorgan's earnings fell short of analyst expectations as the bank built reserves for bad loans by $428 million.
Morgan Stanley MS 0.00%↑ misses analysts’ estimates on worse-than-expected investment banking revenue. The bank’s results were hurt by a steep 55% decline in investment banking revenue.
World’s largest chipmaker TSM 0.00%↑ posts record profit allaying fears over semiconductor headwinds. TSMC, the world’s biggest chipmaker, posted a record net profit in the second quarter. The strong results and outlook, but caution on spending, highlights the careful path chipmakers are walking at a time of concern about rising prices and the impact on consumer demand.
UnitedHealth Group UNH 0.00%↑ is one of a handful of Dow Jones stocks trading in positive territory in 2022, with shares up more than 4% for the year to date. As for UnitedHealth's second-quarter earnings report – due out ahead of Friday's open – the pros, on average, are anticipating earnings of $5.20 per share (+10.6% YoY) and revenue of $79.7 billion (+14.7% YoY).
Other noteworthy earnings reports for today:
What to trade today
This market is hard to trade, so it is better to stay aside. I do not see any low-risk entries, I will just watch what’s happening.
No plan to trade today.
PS: next Trading Plan will be sent on the 25th of July.
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.