Trading Plan: 20 May 2022
Nasdaq (-0.26%) closed lower with average volumes. Hard to anticipate what’s going to be next, so, keep an eye on recent extremes: this Tuesday’s high as resistance and last Thursday’s low as support.
SP-500 (-0.58%) tried both directions during the day, but closed lower with important volumes. Watching 4100 and 3850 levels. Everything is possible, so there is no need to bet.
In the news
U.S. Stock Futures Jump on China Rate Cut.
EV maker Lucid to accelerate plans with its Saudi Arabia factory, its first outside the U.S.
Tether claims its stablecoin is now partially backed by non-U.S. government bonds.
Russia will shut off gas to Finland from Saturday, Finnish energy provider says.
The future of the office could look like a Starbucks.
Sectors
Best yesterday sector: Basic Materials, then Consumer Cyclical. Worst sector: Consumer Defensive.
Best weekly sector: Energy, then Basic Materials. Worst sector: Consumer Defensive.
Best monthly sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.51
VIX (neutral under 20): 29.35
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.21
CNN Fear & Greed: 12 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 15.58%
Stocks above SMA200 (neutral above 30): 21.69%
Number of stocks that increased yesterday by more than 4%: 774
Number of stocks that decreased yesterday by more than 4%: 61
McClellan Oscillator (neutral between -100 and 100): -14.35
Earnings Reports
Palo Alto Networks stock jumps after the company lifts the full-year forecast. Kohl’s says final sale bids are expected in coming weeks; retailer slashes full-year outlook after earnings miss. Tencent profits plunge as Chinese tech giant grapples with Covid lockdowns and regulation.
Noteworthy earnings reports for today:
What to trade today
When the market has no direction, it’s hard to trade. This choppy environment is dangerous for the traders as there is no real support formed.
So, again… no plan to trade for today, just watching. Cash is king.
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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