Trading Plan: 20 September 2022
Nasdaq (+0.76%) tested Friday’s low and ignited back into the support area. The move might seem positive, even if the volumes were low. But this is not a reason to rush things in the market as tomorrow is another test for the market: tomorrow's FED talks. So, it is better to wait.
SP-500 (+0.69%) made a similar move and now the price is back to the support zone. The same idea here, we need to see some confirmation, a direction and more volumes before looking for stock patterns. Watching the recent lows and the main averages (if the case).
In the news
Stocks Rise as Investors Await This Week’s Fed Meeting.
Apple to hike App Store prices in several countries from October.
Bitcoin briefly drops to its lowest level in 3 months as risk assets continue to get crushed.
Ford warns investors of an extra $1 billion in supply chain costs during the third quarter.
We expect a third consecutive 75bp hike.
Sectors
Best yesterday sector: Basic Materials, then Consumer Cyclical. Worst sector: Healthcare
Best weekly sector: Utilities, then Financial. Worst sector: Technology.
Best monthly sector: Energy, then Utilities. Worst sector: Technology.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 33.86
VIX (neutral under 20): 25.76
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.88
CNN Fear & Greed: 37 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 26.07%
Stocks above SMA200 (neutral above 30): 27.00%
Number of stocks that increased yesterday by more than 4%: 76
Number of stocks that decreased yesterday by more than 4%: 141
McClellan Oscillator (neutral between -100 and 100): -39.87
Earnings Reports
AZO 0.00%↑ topped earnings estimates for the fourth quarter Monday, as the aftermarket auto parts retailer closed out its fiscal year with profit and sales growth, bucking the recent industry trend. AutoZone Stock Falls After Earnings Beat.
Noteworthy earnings reports for today:
What to trade today
This is not a time to be aggressive, there is a lot of news pending and it is safer to stay patient. Even if we see some good price action yesterday, I do recommend staying aside for a healthy approach.
Our target is not to find the bottom, but to identify the trend. It is not the case now.
I do not plan to open new positions.
In order to learn more about trading, you may want to read: