Trading Plan: 22 August 2022
Nasdaq (-2.01%) continued its correction with low volume, which is “normal” and I daresay it is also constructive. Even if the price lost its EMA10, a move to the EMA21 area with low volume is not bad. Watching the EMA21 and recent lows as well.
SP-500 (-1.29%) also lost its EMA10 and it heads to its EMA21. We have the same idea, correction with low volume, meaning that not all investors and traders that loaded stocks the day(s) before closed their long positions.
In the news
Apple supplier Foxconn to invest $300 mln more in northern Vietnam.
Elon Musk says Tesla will hike the price of FSD driver assistance software by 25% in September.
Once high-flying Chinese tech giants are now looking to scale back costs.
Forecast for Powell's mountain resort trip: High inflation, limited visibility.
Sectors
Best yesterday sector: Healthcare, then Utilities. Worst sector: Consumer Cyclical.
Best weekly sector: Consumer Defensive, then Utilities. Worst sector: Communication Services.
Best monthly sector: Utilities, then Energy. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 64.44
VIX (neutral under 20): 20.60
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.01
CNN Fear & Greed: 51 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 71.89%
Stocks above SMA200 (neutral above 30): 34.55%
Number of stocks that increased yesterday by more than 4%: 83
Number of stocks that decreased yesterday by more than 4%: 606
McClellan Oscillator (neutral between -100 and 100): -32.40
Earnings Reports
Foot Locker FL 0.00%↑ rallied heavily after reporting better-than-expected earnings. Deere DE 0.00%↑ cuts outlook, misses earnings with costs high and inventories low.
Noteworthy earnings reports for today:
And the week snapshot:
What to trade today
The market can continue its correction, so it is better to watch for the strongest stocks (RS) during this time.
Based on the news Berkshire Hathaway can acquire 50% of Occidental Petroleum, the stock ignited from a classic pattern:
The top 20 Industry Groups are:
I am watching today:
Cytokinetics CYTK 0.00%↑ is correcting nicely around its EMA10. A price above the black line might work. Stop Loss: EMA21.
Axcelis Technologies ACLS 0.00%↑ stays constructive above its EMA21 and a price above Friday's high might work. Stop Loss: EMA21.
Prometheus Biosciences RXDX 0.00%↑ is consolidating between its EMA10 and ATH. A price above the black line might signal a move to the upside. Stop Loss: EMA10.
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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