Trading Plan: 16 August 2022
Nasdaq (+0.62%) continued higher, but notice the lower volumes even compared with the day before. The move is constructive of course, but it was better to see some big volumes from institutions coming in. The next target: SMA200. As always, watching the old resistance, now minor support and the recent lows.
SP-500 (+0.40%) is also grinding higher with lower and lower volumes. The next target is SMA200. I would like to see the price spend more time in this area before building another leg. Otherwise, without a “pause”, we might see some sharp corrections. Watching the recent lows as well.
In the news
Apple reportedly plans to put ads in more apps on your iPhone.
Unity shares drop 7% after board rejects acquisition by AppLovin.
Warren Buffett’s Berkshire Hathaway Keeps Spending Through Volatile Markets.
Biden is to sign the law on Tuesday cutting most current EV credits.
Walmart enters a streaming deal with Paramount+ in a race with Amazon.
Sectors
Best yesterday sector: Consumer Defensive, then Utilities. Worst sector: Energy.
Best weekly sector: Financial, then Real Estate. Worst sector: Healthcare.
Best monthly sector: Industrials, then Technology. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 71.59
VIX (neutral under 20): 19.95
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.90
CNN Fear & Greed: 55 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 80.88%
Stocks above SMA200 (neutral above 30): 37.87%
Number of stocks that increased yesterday by more than 4%: 278
Number of stocks that decreased yesterday by more than 4%: 193
McClellan Oscillator (neutral between -100 and 100): 149.31
Earnings Reports
When Walmart WMT 0.00%↑ steps into the earnings confessional ahead of Tuesday's open, analysts, on average, expect the retailer to report earnings of $1.60 per share, down 10.1% on a year-over-year (YoY) basis. Revenue is projected to rise 7% to $150.8 billion.
Other noteworthy earnings reports for today:
What to trade today
Market continued higher, but not with big money. So, I will be (a little bit) cautious during these days.
There are still stocks in the game (see the previous Trading Plans), not triggered yet and I will be very peaky choosing the ones that offer the best low-risk entries.
Besides these, I will watch National Fuel Gas NFG 0.00%↑. It formed a cup and handle and the price might go up, above the black line. Stop Loss: EMA21.
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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