Trading Plan: 16 March 2022
Nasdaq (+2.92%) come back strongly from the support, but hard to say now if it is a powerful move or just some covering for the people were short. Today FED will have the news regarding the rate hike.
SP-500 (+2.14%) also reversed with average volumes. Watch the key levels marked with a black line. No active trading until the market responds to the FED decision later today.
Besides Energy, the market was green yesterday:
In the news
Intel announced that it’s planning on building a semiconductor plant in Germany.
Wholesale inflation climbed 0.8% in February, lower than estimated but still up 10% from last year.
Hong Kong’s Hang Seng index surges 9%, the best day since October 2008.
Microsoft dives into Web3 with investment in Ethereum co-founder’s start-up ConsenSys.
China has seen its worst Covid outbreak since the initial height of the pandemic in early 2020.
Russia could be about to default on its debt.
Sectors
Best yesterday sector: Technology, then Consumer Cyclical. Worst sector: Energy.
Best weekly sector: Financial, then Healthcare. Worst sector: Energy.
Best monthly sector: Utilities, then Basic Materials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 42.58
VIX (neutral under 20): 29.83
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.06
CNN Fear & Greed: 19 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 35.86
Stocks above SMA200 (neutral above 30): 30.26%
Number of stocks that increased yesterday by more than 4%: 219
Number of stocks that decreased yesterday by more than 4%: 60
Earnings Reports
Lennar stock put in a stellar performance in 2021, posting a total return (price plus dividends) of 53.7% amid a red-hot housing market. For Lennar’s fiscal first-quarter earnings report — due out after the March 16 close — analysts’ consensus estimates are for a per-share profit of $2.60, down 18.8% year-over-year (YoY) on $6.1 billion revenue, a 15% increase over the year prior.
Other noteworthy earnings reports for today:
What to trade today
Trading before the FED decision is risky. Volatility is high.
No plan to trade for today.
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.