Trading Plan: 2 November 2022
Nasdaq (-0.89%) gapped up in the morning, but closed weak, at the lows, just below its EMA21. The distribution day might suggest another down leg, but the price action is still in a consolidation phase. Watching the 10700 level and recent highs.
SP-500 (-0.41%) still shows a constructive bull flag, even if yesterday was a red day. Living about the SMA50 during the pullback looks healthy. Breaking the 3800 level might signal lower prices. A price above yesterday’s high is bullish.
In the news
The Fed is expected to raise interest rates by three-quarters of a point and then signal it could slow the pace.
World’s largest container shipping firm Maersk, a barometer for global trade, warns of ‘dark clouds on the horizon’.
Elon Musk Hints at $8 Monthly Subscription for Twitter’s Verified Users.
Tesla closes its first showroom in China in a retail strategy shift.
Oil giant Saudi Aramco’s quarterly profit surges 39% on higher prices.
Sectors
Best yesterday sector: Basic Materials, then Energy. Worst sector: Communication Services.
Best weekly sector: Energy, then Utilities. Worst sector: Communication Services.
Best monthly sector: Energy, then Industrials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 53.91
VIX (neutral under 20): 25.81
Put / Call Ratio (neutral between 0.7 and 1): 0.95
CNN Fear & Greed: 56 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 64.00%
Stocks above SMA200 (neutral above 30): 37.60%
Number of stocks that increased yesterday by more than 4%: 298
Number of stocks that decreased yesterday by more than 4%: 150
McClellan Oscillator (neutral between -100 and 100): 176.56
Earnings Reports
AMD AMD 0.00%↑ misses but still ekes out 29% revenue growth. Pfizer PFE 0.00%↑ raises 2022 earnings guidance, beats third-quarter expectations. Uber UBER 0.00%↑ stock pops 11% on revenue beat, strong guidance.
Noteworthy earnings reports for today:
What to trade today
Market was red yesterday while some stocks made some good moves. It was risky to go long, but Scorpio Tankers STNG 0.00%↑ made a beautiful move and caught it just at the breakout moment. I am long LNG 0.00%↑ and DCP 0.00%↑ as well (each 5% position). If the market does not pass the mentioned levels, I do not intend to add more longs.
I will watch: CF Industries CF 0.00%↑, but only after today's earnings.
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: