Trading Plan: 17 February 2022
Even if decreased by 0.11%, Nasdaq had another inside day and the price keeps on consolidating under the EMA21. In the morning we saw a gap down that continued for a few hours, but after FED notes, the price came back to the highs, closing the day on a positive note. The pattern seems to want to go higher, but the overall conditions are bearish. Waiting for a clear trend.
SP-500 maintained the same position (+0.09%). It is still holding the SMA200 with the same volumes as the previous days. The same idea here as well, there is no need to enter aggressively in the market until a trend is in place. Watch last week's highs and this Monday's low as key leveles.
In the news
Google plans privacy change similar to Apple’s, which wiped $230 billion off Facebook’s market cap.
Federal Reserve officials outlined plans for interest rate hikes and a reduction in the asset holdings on their balance sheet at their last meeting.
The Big Mac’s price is up 40% over the last 10 years outpacing the cost of living
U.S. Retail Sales Jump as Inflation Surges.
Russia Is Continuing to Build Up Forces Near Ukraine and NATO, U.S. see no de-escalation by Moscow.
Sectors
Best yesterday sector: Basic Materials, then Energy. Worst sector: Technology.
Best weekly sector: Basic Materials, then Energy. Worst sector: Technology.
Best monthly sector: Energy, then Basic Materials. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 66.8
VIX (neutral under 20): 24.29
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.96
CNN Fear & Greed: 40(Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 39.26%
Stocks above SMA200 (neutral above 30): 34.19%
Number of stocks that increased yesterday by more than 4%: 196
Number of stocks that decreased yesterday by more than 4%: 176
Earnings Reports
Nvidia delivered solid revenue projections after the bell with robust demand for computer processors. Shopify got smoked today despite beating earnings and sales expectations. $SHOP sank 17% after investors were concerned about increased spending on the fulfillment network. DoorDash posted better-than-expected revenue for the fourth quarter. Shares of the company soared almost 20% on the results. Fastly fell fatly even after reporting better-than-expected earnings and sales. $FSLY flopped 28% in extended trading after calling for weaker growth than predicted.
Walmart ($WMT) will unveil its fourth-quarter results ahead of Thursday’s open. Analysts, on average, are expecting Walmart to report fourth-quarter earnings of $1.49 per share, +7.2% YoY, and revenue of $151.5 billion, a marginal decrease from the year-ago period.
Other noteworthy earnings reports for today: Dropbox, Palantir, Pool, Redfin, Roku, SunRun, Tower Semiconductor.
What to trade today
Doximity ($DOCS) stays well and it might continue now the uptrend. If above the black line, the trade might work. Stop Loss at $54.
Discover Financial Services ($DFS) might have a diagonal breakout. Stop Loss: $123.
Deere & Co ($DE) formed a long base and it consolidated nicely under the ATH. It might break out at $400. Stop Loss at EMA21.
Digital World ($DWAC) shows a nice VCP and holds well the EMA21. It might break out above the black line. Stop Loss at yesterday low.
Devon ($DVN) might want to continue the uptrend. If it can pass the black line, it might work. Stop Loss at EMA21.
The ones from yesterday are still in the game:
$ZS
$MU
$NVDA
$BILL
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.