Trading Plan: 20 April 2022
Nasdaq (+2.15%) seems to play a game, it is down one day and then up the next. Hard to trade in this choppy environment, it is better to see the price exit this area and to have a trend confirmation.
SP-500 (+1.61%) made a wide range bar, but the volumes are still under average. Investors are not yet prepared to enter the market. Sticking with the strong sectors/industries is the key. Notice all the main averages (EMA21, SMA50, SMA200) vs. price, a very balanced position.
In the news
Crypto Stocks Perform Worse Than Cryptocurrencies.
Netflix Explores a Version With Ads as Subscriber Base Shrinks.
Streaming stocks slide after Netflix says it is losing subscribers.
Biden says the U.S. will send more weapons to Ukraine.
China’s economy is sputtering.
Sectors
Best yesterday sector: Consumer Cyclical, then Real Estate. Worst sector: Energy.
Best weekly sector: Energy, then Consumer Cyclical. 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): 21.37
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.96
CNN Fear & Greed: 40 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 54.24%
Stocks above SMA200 (neutral above 30): 37.57%
Number of stocks that increased yesterday by more than 4%: 529
Number of stocks that decreased yesterday by more than 4%: 89
McClellan Oscillator (neutral between -100 and 100): 31.95
Earnings Reports
Netflix shares are down 25% after the company reports it lost subscribers for the first time in more than 10 years. IBM blitzed 3% in extended trading following first-quarter earnings and sales beat. Revenue grew 7.7% year-over-year and the company raised full-year guidance.
Tesla ($TSLA): analysts, on average, are targeting earnings of $2.26 per share - a marked improvement over the 93 cents per share it reported in Q1 2021. On the top line, the consensus estimate is for $17.8 billion, up 71.2% year-over-year (YoY).
Other noteworthy earnings reports for today:
What to trade today
Growth stocks had a very good day, but no risk entries. Keep them on your watchlist, they might work soon.
Also, keep the non-triggered stocks ($CVX, $EOG) on the watchlist if they show a valid pattern.
Cleveland Cliffs ($CLF) is consolidating nicely above the EMA21 and seems it is prepared for a breakout. Stop Loss at EMA21 / yesterday’s low.
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:
If you enjoyed this story, you may subscribe to receive my newsletter first! If not a Medium member, here you can become one!
Follow me on Twitter for market updates.