Trading Plan: 17 May 2022
Nasdaq (-1.20%) had an inside day with average volume. In the short term, just watch the direction (over yesterday’s high or under yesterday’s low). For the medium term, keep an eye on the support in the 10800 area and the next resistances (that coincide now with the main averages: EMA21, SMA50 and SMA200).
SP-500 (-0.39%) had a good price action, basically, the price made a small retracement with low volumes. The bull flag pattern is still in place and it might work. Watch yesterday’s high and Friday’s low for the short term. Keep an eye on the support as well (3850 area). For the medium-term, watch the resistances black lines.
In the news
Warren Buffett’s Berkshire made a $3 billion bet on Citigroup.
JPMorgan upgrades China’s tech sector.
$3 billion in bitcoin was sold in a last-ditch attempt to save UST stablecoin from collapse.
McDonald's plans to sell its Russian business.
Sectors
Best yesterday sector: Energy, then Healthcare. Worst sector: Consumer Cyclical.
Best weekly sector: Energy, then Healthcare. Worst sector: Consumer Cyclical.
Best monthly sector: Energy, then Consumer Defensive. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 24.31
VIX (neutral under 20): 27.47
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.92
CNN Fear & Greed: 12 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 16.87%
Stocks above SMA200 (neutral above 30): 23.06%
Number of stocks that increased yesterday by more than 4%: 216
Number of stocks that decreased yesterday by more than 4%: 152
McClellan Oscillator (neutral between -100 and 100): -21.91
Earnings Reports
Walmart ($WMT) will unveil its first-quarter earnings report ahead of Tuesday's open. Amid tough year-over-year (YoY) comparisons that include last year's stimulus-related pop, consensus estimates are for Walmart to report a 12.4% drop in earnings to $1.48 per share. Revenue is expected to arrive at $138.8 billion (+0.4% YoY).
Other noteworthy earnings reports for today:
What to trade today
A good day for Energy and a bad day for growth stocks. Of course, no indication for today. $CVX was triggered and $CELH is still in the game.
Lantheus Holdings ($LNTH) had a constructive pattern and announced live on Twitter:
Today I will watch:
Advanced Micro Devices ($AMD) is at a key level. It will be interesting to see it above the black line and SMA50. Stop Loss: 5%.
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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