Trading Plan: 18 October 2022
Nasdaq (+3.43%) gapped up in the morning and succeeded to stay at the highs. The close was strong with average volumes. The inside day might suggest a sideway consolidation at these levels. Watching Friday’s high vs. Thurday’s low.
SP-500 (+2.65%) also had a strong day, gapped up and continued its uptrend for the day. Good volumes. The next step is to take the EMA21 / Friday’s high… with volumes! Watching the marked levels as well.
In the news
Microsoft confirms job cuts after calling for growth to slow.
Apple freezes plans to use China's YMTC chips.
Apple is bringing Spatial Audio to cars, starting with Mercedes-Benz.
Goldman Sachs sees deeper UK recession after-tax U-turn.
Dozens of LNG-laden ships queue off Europe's coasts unable to unload.
"Bitcoin as safe haven" theory crumbles in face of persisting inflation.
Sectors
Best yesterday sector: Consumer Cyclical, then Real Estate. Worst sector: Consumer Defensive.
Best weekly sector: Healthcare, then Real Estate. Worst sector: Basic Materials.
Best monthly sector: Energy, then Healthcare. Worst sector: Utilities.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.84
VIX (neutral under 20): 31.37
Put / Call Ratio (neutral between 0.7 and 1): 0.97
CNN Fear & Greed: 29 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 31.10%
Stocks above SMA200 (neutral above 30): 21.28%
Number of stocks that increased yesterday by more than 4%: 862
Number of stocks that decreased yesterday by more than 4%: 82
McClellan Oscillator (neutral between -100 and 100): 50.83
Earnings Reports
Bank of America tops estimates on better-than-expected bond trading and higher interest rates.
Netflix NFLX 0.00%↑ will report its third-quarter earnings after today's close. Consensus estimates are for NFLX to report third-quarter earnings of $2.13 per share, down 33.2% year-over-year (YoY). Revenue is projected to land at $7.8 billion, up 4.8% over the year-ago figure.
Other noteworthy earnings reports for today:
What to trade today
Good breath, but still a volatile environment and risky. This price action might be the first step when a new trend starts, but I would like to see more power.
I will watch DGII 0.00%↑, CEG 0.00%↑, VIST 0.00%↑ and DINO 0.00%↑ over yesterday's high.
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: