Trading Plan: 15 September 2022
Nasdaq (+0.74%) reversed from its support with strong volumes. It seems this area attracts buyers, but do not forget it is also a very dangerous zone: a price breakdown below the ~14470 might signal a power switch back to the sellers. Watching the support and the SMA50 / EMA21 / Monday’s high.
SP-500 (+0.34%) made a small bottoming tail candle. Good volumes for this reversal, but this is also a bear flag. A price below yesterday’s low and then last week's pivot might signal a reenter in bearish mode.
In the news
Biden to announce the approval of $900 million in U.S. EV charging funding.
Ford asks dealers to invest in EVs as it chases Tesla-like profit.
Rhythm Pharmaceuticals announces $100M stock offering.
Ethereum’s massive software upgrade just went live.
Sectors
Best yesterday sector: Energy, then Consumer Cyclical. Worst sector: Real Estate.
Best weekly sector: Energy, then Consumer Cyclical. Worst sector: Real Estate.
Best monthly sector: Energy, then Utilities. Worst sector: Technology.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 27.33
VIX (neutral under 20): 26.16
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.08
CNN Fear & Greed: 42 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 33.44
Stocks above SMA200 (neutral above 30): 27.76
Number of stocks that increased yesterday by more than 4%: 234
Number of stocks that decreased yesterday by more than 4%: 166
McClellan Oscillator (neutral between -100 and 100): -11.01
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
Market is not at a stable point, both directions are in the books: reverse from the support vs. breakdown from the newly formed bear flag. If trading, you may consider a smaller position size and a tighter stop.
I will watch today:
In order to learn more about trading, you may want to read: