Nasdaq (-3.08%) made a strong pullback and closed weak for the day. It seems the price wants to touch the 10.000 level, do not forget the overall trend is down. But a sideways consolidation here is also possible. Hard to bet on a direction. Watching the marked levels for more clues.
SP-500 (-2.37%) also made a strong retracement. Testing the lows? Continue the bear rally from the W patterns? All scenarios are possible now, no need to bet now. Watching the marked levels for now.
In the news
Nearly every CEO bracing for a recession over the next 12 to 18 months.
OPEC+ members line up to endorse output cut after U.S. coercion claim.
After two years of shipping snarls, things are starting to turn around.
China faces its "Sputnik" moment as US export curbs deal a blow to its chip ambitions.
Xi warns against foreign interference in Taiwan, says China will ‘never promise to renounce’ force.
Sectors
Best yesterday sector: Healthcare, then Financial. Worst sector: Basic Materials.
Best weekly sector: Consumer Defensive, then Healthcare. Worst sector: Consumer Cyclical.
Best monthly sector: Energy, then Healthcare. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.84
VIX (neutral under 20): 32.02
Put / Call Ratio (neutral between 0.7 and 1): 0.91
CNN Fear & Greed: 21 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 21.85%
Stocks above SMA200 (neutral above 30): 21.28%
Number of stocks that increased yesterday by more than 4%: 81
Number of stocks that decreased yesterday by more than 4%: 368
McClellan Oscillator (neutral between -100 and 100): -45.25
Earnings Reports
Citigroup reports a 25% decline in third-quarter profits but tops revenue expectations. Wells Fargo shares jump 3% as bank tops expectations despite boosting loan loss reserves. Morgan Stanley shares drop 4% after missing profit estimate as investment banking revenue collapses. JPMorgan Chase tops estimates as the bank reaps more interest income than expected after a jump in rates.
Other noteworthy earnings reports for today:
Main earnings for the week:
What to trade today
Market is at the year’s low, volatility is still high, political tensions are also high. Nothing to bet on in my opinion.
Just studying the market internals and watching RS stocks. Here are the top 20 industries.
I do not intend to trade today.
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.
In order to learn more about trading, you may want to read:
I might try getting exposure to solar stocks (#2 on RS list) through semiconductor ETF.
Why?
The old adage, "When the VIX is high it's time to buy".
SMH has the highest sector volatility in the market
Thinking just a small position I can add on to if things improve.