Trading Plan: 19 April 2022
Nasdaq (-0.14%) tried both directions during the day and closed around the same level (short-term support) by a Doji candle. But, the new formation is a bear flag which might suggest the price will go lower. Watching this support to see if it holds.
SP-500 (-0.02%) shows the same idea, a pause at the support area. Watching closely this level for clues regarding the direction. If the support is broken, there is no real support until the 4100 area.
In the news
Investors turn cautious about Chinese stocks amid growth concerns.
Apollo Global Considers Participating in a Bid for Twitter.
Zelensky: Russia’s large-scale offensive in eastern Ukraine has started.
Inflation is pushing prices higher and higher, and some of those costs may never come back down to the levels Americans were accustomed to before the pandemic.
Americans are drowning in spam.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Healthcare.
Best weekly sector: Energy, then Basic Materials. Worst sector: Healthcare.
Best monthly sector: Energy, then Utilities. Worst sector: Technology.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 63.29
VIX (neutral under 20): 22.17
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.95
CNN Fear & Greed: 39 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 47.32%
Stocks above SMA200 (neutral above 30): 35.53%
Number of stocks that increased yesterday by more than 4%: 176
Number of stocks that decreased yesterday by more than 4%: 429
McClellan Oscillator (neutral between -100 and 100): -29.29
Earnings Reports
Bank of America shares jump after lender tops analysts’ estimates on better-than-expected credit. Here are the numbers: Earnings of 80 cents a share vs 75 cents a share Refinitiv estimate. Revenue: $23.33 billion vs $23.2 billion estimate.
Inflation will certainly be in focus when Johnson & Johnson ($JNJ) reports its first-quarter earnings report ahead of Tuesday’s open. Consensus estimates are for Johnson & Johnson to report revenue of $23.7 billion, +7.7% year-over-year (YoY), and earnings of $2.61 per share (+0.8% YoY).
It’s been a rough year for communication services stocks and Netflix ($NFLX) is no exception. Shares are off around 43% so far in 2022 to erase all of their pandemic-related gains. Analysts, on average, are looking for earnings of $2.90 per share (-22.3% YoY) and revenue of $7.9 billion (+10.7% YoY).
Other noteworthy earnings reports for today:
What to trade today
Both longs ($APA, $OXY) and shorts ($ASAN and $SE) were triggered yesterday. Focus on identifying the next market leg in order to prioritize the stocks in that direction. Oils ($DVN, $CVX at ATH again) and Basic Materials are the strongest stocks while Technology is still struggling. Still watching for longs: $PANW.
Grid Dynamics ($GDYN) is acting very constructive around the EMA21 and SMA50, volumes are decreasing, ATR is low. A pop-up above the black line might work, the stock seems it wants to go higher. Stop Loss at EMA21.
Eog Resources ($EOG) is correcting in time and once the main averages are approaching the price, we might see a breakout. Stop Loss at EMA21.
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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