Trading Plan: 15 March 2022
Nasdaq (-2.04%) closed lower than February low with important volumes signaling another distribution day. The index is now at ~22% off its peak and might go even farther to the next supports: ~12.000 area or even ~11.000 area. We are in a bear market.
SP-500 tested this month low and snap back a little. Watch the next support at ~4050 area. We are in the news-driven market and volatility is increasing. Today and tomorrow is the FED meeting and the market is waiting for new signals.
In the news
Rates are expected to be raised by 25bps.
Foxconn Technology Group - Apple’s largest iPhone manufacturer - is in talks with the Saudi government to build a massive manufacturing facility in Saudi Arabia.
Morgan Stanley sees zero GDP growth for China this quarter.
Tesla has bought aluminum from Russian company Rusal since 2020, showing how war complicates the supply chain.
Sectors
Best yesterday sector: Financial, then Consumer Defensive. Worst sector: Energy.
Best weekly sector: Financial, then Industrials. Worst sector: Energy.
Best monthly sector: Utilities, then Energy. Worst sector: Consumer Cyclical
Sentiment
NAAIM (weekly, neutral between 70 and 90): 42.58
VIX (neutral under 20): 31.77
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.00
CNN Fear & Greed: 16 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 32.10%
Stocks above SMA200 (neutral above 30): 28.96%
Number of stocks that increased yesterday by more than 4%: 153
Number of stocks that decreased yesterday by more than 4%: 971
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
I will remain at the same conclusion, this is not a time to swing trade aggressively. Volatility is too high and the FED meeting is about to begin. News can send prices in both directions, so caution is the key word.
Advanced Micro Devices ($AMD) tries to stay above the support. If broken, this can be traded with Stop Loss at 3-4%.
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.