Trading Plan: 19 August 2022
Nasdaq (+0.21%) stays at the same level and managed to stay above its EMA10. It seems the price is consolidating in time and waiting for the EMA21/SMA50 to catch up. Watching the recent highs and recent lows.
SP-500 (+0.23%) made a similar move while consolidating under the SMA200. The volumes were lower, this might be interpreted as an agreement between the buyer and sellers. Watching the marked channel lines for clues.
In the news
US natural gas prices spike to 14-year high.
Ether is up 100% since its bottom in June, massively outperforming bitcoin.
The U.S. to accelerate monkeypox vaccine distribution.
Flying taxis get a big boost from military money.
Sectors
Best yesterday sector: Energy, then Technology. Worst sector: Real Estate.
Best weekly sector: Consumer Defensive, then Utilities. Worst sector: Healthcare.
Best monthly sector: Utilities, then Industrials. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 64.44
VIX (neutral under 20): 19.56
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.92
CNN Fear & Greed: 54 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 77.56%
Stocks above SMA200 (neutral above 30): 37.99%
Number of stocks that increased yesterday by more than 4%: 234
Number of stocks that decreased yesterday by more than 4%: 140
McClellan Oscillator (neutral between -100 and 100): 62.19
Earnings Reports
Kohl’s KSS 0.00%↑ cuts guidance, blaming inflation for softer sales from middle-income shoppers. Canadian Solar CSIQ 0.00%↑ hit a new 52-week high, popping more than 15%, after reporting quarterly profits that beat expectations. BJ’s Wholesale BJ 0.00%↑: shares of the club retailer popped more than 7% on Thursday after BJ’s reported better-than-expected results for the second quarter. Wolfspeed WOLF 0.00%↑: Shares surged more than 31% after the semiconductor company surpassed expectations in its most recent earnings report.
Noteworthy earnings reports for today:
What to trade today
There were some notable breakouts yesterday due to earnings or industry momentum. The market might be at an inflection point as there is a lot of overhead supply.
I will focus to manage the already opened positions and I do not plan to open new positions today.
I will watch:
GitLab GTLB 0.00%↑ made a mean revision, a price above yesterday's high might work. Stop Loss: EMA21.
A short idea: BABA 0.00%↑ tested third time the support. A breakdown under the red line might send the price lower and lower. Stop Loss: EMA10 or $92.
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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