Trading Plan: 17 August 2022
Nasdaq (-0.19%) closed flat with a Doji candle. Buyers and sellers have more or less the same power, in a way expected at a resistance level and while very close to the next target SMA200. Probably the price is building a new base before the next leg. Looking to see more money entering the market and watching the SMA200 and the recent lows.
SP-500 (0.19%) closed also flat, but with a small advance. The volumes were higher than the day before, but below the average. Watching this important level (SMA200) while keeping an eye on the recent lows.
In the news
China needs Taiwan’s biggest chipmaker - more than the other way around.
Biden signs the Inflation Reduction Act into law, setting a 15% minimum corporate tax rate.
BlackRock makes a $700 million investment in Australian battery storage.
Rents are soaring pretty much everywhere in the U.S.
Amazon is raising seller fees for the holidays to manage surging inflation.
Sectors
Best yesterday sector: Consumer Defensive, then Basic Materials. Worst sector: Technology.
Best weekly sector: Consumer Cyclical, then Financial. Worst sector: Energy.
Best monthly sector: Industrials, then Technology. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 71.59
VIX (neutral under 20): 19.69
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.85
CNN Fear & Greed: 57 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 80.56%
Stocks above SMA200 (neutral above 30): 39.17%
Number of stocks that increased yesterday by more than 4%: 213
Number of stocks that decreased yesterday by more than 4%: 197
McClellan Oscillator (neutral between -100 and 100): 141.81
Earnings Reports
Walmart WMT 0.00%↑ sticks with second-half outlook after earnings beat expectations. Home Depot HD 0.00%↑ beats second-quarter earnings expectations and stands by 2022 guidance.
Lowe's Companies LOW 0.00%↑ will report its second-quarter results on the morning of Aug. 17. The company beat on its bottom line in Q1, but reported top-line results that fell short of what analysts were expecting. This time around, consensus estimates are for LOW to report earnings of $4.62 per share (+8.7% YoY) and revenue of $28.1 billion (+1.8% YoY).
Other noteworthy earnings reports for today:
What to trade today
Probably we will see some ups and downs these days as there are some sector rotations. But, the strongest industries keep on grinding: Solar, Bio, Oils, Medical and some Retail.
I will watch Daqo New Energy DQ 0.00%↑. The price stays near the main averages and we might see an ignited bar on the following day(s). Stop Loss: EMA21.
Continental Resources CLR 0.00%↑ has low volumes and ATR declining. Price above all averages. A breakout above the black line with volume is possible. Stop Loss: EMA21/SMA50.
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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