Trading Plan: 2 August 2022
Nasdaq (-0.18%) made a pause in its advance and we might see a pullback as well. It is “normal” and constructive if the volumes are low. It is possible to see the price staying a little bit longer and consolidating in this area and building a new base. As always, keep an eye on the recent lows as well.
SP-500 (-0.28%) made a small pullback with lower volume. This inside day is still normal as long as recent lows are not violated. Watching the close resistance (we might see o consolidation here) and recent lows as well.
In the news
Pelosi to visit Taiwan, local media say, despite China's warnings. The U.S. expects military "provocations" from China if Pelosi visits Taiwan.
Amazon launches same-day delivery from some brick-and-mortar retail brands.
California and Illinois declare health emergency over monkeypox outbreak.
Shares of energy drink maker Celsius CELH 0.00%↑ rallied 11.14% on news that PepsiCo PEP 0.00%↑ has taken a $550 million stake in the company.
Grain ship departs Ukraine port for the first time since the Russian blockade.
Sectors
Best yesterday sector: Consumer Defensive, then Consumer Cyclical. Worst sector: Energy.
Best weekly sector: Technology, then Industrials. Worst sector: Healthcare.
Best monthly sector: Technology, then Consumer Cyclical. Worst sector: Basic Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 47.21
VIX (neutral under 20): 22.84
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.02
CNN Fear & Greed: 39 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 71.14%
Stocks above SMA200 (neutral above 30): 28.38%
Number of stocks that increased yesterday by more than 4%: 202
Number of stocks that decreased yesterday by more than 4%: 208
McClellan Oscillator (neutral between -100 and 100): 152.17
Earnings Reports
Pinterest PINS 0.00%↑ climbs on user numbers and Elliott investment even as financials disappoint.
Advanced Micro Devices AMD 0.00%↑ is one name expected to deliver impressive year-over-year growth on both the top and bottom lines when it unveils its second-quarter earnings report after the Aug. 2 close. Analysts, on average, are anticipating EPS of $1.03 for the semiconductor stock, up 63.5% year-over-year (YoY). And revenue is expected to soar 69.6% to $6.5 billion.
Other noteworthy earnings reports for today:
What to trade today
It seems the market is in a pause. Hard to make a prediction since there is news pending, especially from the political side… so let’s focus on the price action.
I will watch:
GitLab GTLB 0.00%↑ stays constructively on the EMA21. Low volumes and ATR. A possible breakout above the black line. Stop Loss: 5%.
Ufp Technolgies UFPT 0.00%↑ is consolidating above its main averages. A price above the black line might work. Stop Loss: 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.