Trading Plan: 19 September 2022
Nasdaq (-0.90%) gapped down and was able to close the day in a “not-so-bad” bottoming candle. We will probably see other daily candles in this area before a direction is set up. Watching Friday’s low for now.
SP-500 (-0.72%) made a similar move with above-average volumes. Even if the price recovered around half of the total daily difference, there was some severe selling taking place. Watching Friday’s low vs. a possible reversal towards the main averages.
In the news
World Bank sees a rising risk of a global recession in 2023.
Air Canada to buy 30 electric planes from Heart Aerospace.
Electric Vehicles Took Off. Car Makers Weren’t Ready.
Volkswagen targets a 70-75 billion euro valuation in the planned Porsche IPO.
Sectors
Best yesterday sector: Consumer Defensive, then Real Estate. Worst sector: Energy.
Best weekly sector: Energy, then Healthcare. Worst sector: Basic Materials.
Best monthly sector: Energy, then Utilities. Worst sector: Technology.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 33.86
VIX (neutral under 20): 26.30
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.17
CNN Fear & Greed: 36 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 23.90%
Stocks above SMA200 (neutral above 30): 25.28%
Number of stocks that increased yesterday by more than 4%: 140
Number of stocks that decreased yesterday by more than 4%: 781
McClellan Oscillator (neutral between -100 and 100): -90.22
Earnings Reports
Noteworthy earnings reports for today:
The most anticipated earnings releases scheduled for this week:
What to trade today
The bad: Market gapped down below support. The good: The formed candle had a bottoming tail. The assessment: Patience - wait for the right setup and keep an eye on the stocks with good RS: ENPH 0.00%↑ WOLF 0.00%↑ INSW 0.00%↑ DCP 0.00%↑ TRMD 0.00%↑ RXDX 0.00%↑ VXRT 0.00%↑ LFG 0.00%↑ NBIX 0.00%↑ SRTS 0.00%↑ SWAV 0.00%↑ CELH 0.00%↑ KRTX 0.00%↑, CEG 0.00%↑ ORA 0.00%↑ TH 0.00%↑ etc.
In order to learn more about trading, you may want to read: