Trading Plan: 17 March 2022
Nasdaq (+3.77) continued the reversal with strong volumes. It seems some institutions reenter the market. A very good close above the EMA21 and there are many chances to see the price close to the SMA50.
SP-500 also closed strong, the next target might be the SMA200 area but (hopefully) after a few consolidation and constructive days.
In the news
The Fed approved a 0.25 percentage point rate hike, the first increase since December 2018.
The producer price index rose 0.8% in February, slightly lower than the 0.9% Dow Jones estimate.
Crypto’s market cap is up 3.98% over the last 24 hours. Bitcoin is up 4.03% and Ethereum gained 5.38% over the same period.
Chinese tech stocks appreciated one of their best days in months as major names moved to the upside.
Tesla raised the price for its cheapest Model Y car in China by 15,060 yuan ($2,372) on Thursday, following two consecutive price hikes for more expensive versions in just over a week.
Sectors
Best yesterday sector: Consumer Cyclical, then Technology. Worst sector: Utilities.
Best weekly sector: Consumer Cyclical, then Financial. Worst sector: Energy.
Best monthly sector: Utilities, then Basic Materials. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 42.58
VIX (neutral under 20): 26.67
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.01
CNN Fear & Greed: 22 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 45.27
Stocks above SMA200 (neutral above 30): 33.17%
Number of stocks that increased yesterday by more than 4%: 891
Number of stocks that decreased yesterday by more than 4%: 47
Earnings Reports
FedEx (FDX) earnings are often seen as a bellwether, with results from the delivery giant giving Wall Street a glimpse into the trends of the broader economy including consumer spending, e-commerce and supply chains. For his part, the analyst sees year-over-year revenue growth of 11.1% and earnings-per-share growth of 28.2% in FDX’s fiscal third quarter.
GameStop (GME) is scheduled to report its fourth-quarter results after the March 17 close. As for GameStop’s Q4 earnings report, analysts, on average, are anticipating earnings of 84 cents per share (-37.3% YoY) and revenue of $2.2 billion — up 4.4% from the year-ago period.
Other noteworthy earnings reports for today:
What to trade today
Stocks continued higher yesterday after the FED news, it is most likely to be more optimistic.
Broadcom ($AVGO) holds very well and the pattern looks constructive. If the price goes above the black line level, it can be bought with Stop Loss at 4%.
Tesla ($TSLA) might break the downtrend channel. If the price is above the black line, it can be bought with Stop Loss at 4–5% max.
Bill ($BILL) reversed strongly on yesterday, the wide range bar might signal a continuation. If the price keeps yesterday high / passes the black line it can be bough. Stop Loss: 4%.
Coinbase ($COIN) made also a nice move as crypto went higher yesterday. If passed the black line, it can be bought. Stop Loss: 4%.
Perficient ($PRFT) build a nice base during the past weeks, it might break out if the price goes above the black line. Stop Loss: 4%.
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.