Trading Plan: 16 November 2022
Nasdaq (1.45%) made an important gap up and descended during the day. The volumes were quite substantial, it seems new money is entering the market. I think it is healthy to have here a pause, a consolidation before a continued advance. Anyway, as always, be prepared for all scenarios and watch the next resistance and of course, the old resistance that has become minor support now.
SP-500 (+0.87) is up for the day with above-average volumes and the price seems to consolidate here (which is very healthy). Watching the SMSA200 and the next resistance while keeping an eye on the recent lows.
In the news
Wholesale prices rose 0.2% in October, less than expected, as inflation eases.
Japan's economy unexpectedly shrinks as hot inflation, global slowdown take toll.
NASA launches its new Moon rocket for 1st time.
Berkshire Hathaway Bets Big on Taiwanese Chip Maker.
Oil prices up after incident involving vessel off Oman coast.
Sectors
Best yesterday sector: Communication Services, then Technology. Worst sector: Healthcare.
Best weekly sector: Technology, then Communication Services. Worst sector: Energy.
Best monthly sector: Basic Materials, then Industrials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 53.33
VIX (neutral under 20): 24.54
Put / Call Ratio (neutral between 0.7 and 1): 0.84
CNN Fear & Greed: 68 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 74.81%
Stocks above SMA200 (neutral above 30): 45.35%
Number of stocks that increased yesterday by more than 4%: 446
Number of stocks that decreased yesterday by more than 4%: 162
McClellan Oscillator (neutral between -125 and 100): 98.17
Earnings Reports
Walmart WMT 0.00%↑ raises outlook as groceries boost sales, inventory glut recedes. Sea SE 0.00%↑ Non-GAAP EPS of -$0.66 beats by $0.29, revenue of $3.2B beats by $190M. Home Depot HD 0.00%↑ posts better-than-expected quarter despite inflation.
Cisco Systems CSCO 0.00%↑ is slated to report fiscal first-quarter results after Wednesday's close. Analysts, on average, forecast earnings of 84 cents per share (+2.4% YoY) and revenue of $13.3 billion (+3.1% YoY).
Noteworthy earnings reports for today:
What to trade today
Market seems to advance while digesting the news. Until now, the move looks good and constructive.
From the trading plan $ASC, $KNSA, XPRO 0.00%↑ already triggered the rest are still in the game.
Even if not in a great industry now, I like the FCFS 0.00%↑ price action. We can have a low-risk entry above the black line. The mean reversion might work. 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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