Trading Plan: 22 June 2022
Nasdaq (+2.15%) gapped up, but the volumes were not strong. And the second part of the day was weak, it seems the institutions were not putting money back into the market. Keep an eye on the EME21 / SMA50 and for the recent support as well for clues.
SP-500 (+2.45%) had a similar move. Not good volumes, so until we see interest in the reversal, it is better to remain bearish. A possible short rally is likely, but there are many chances for rejection in a (few) session(s). Looking for consolidation here before making some bets.
In the news
Coal investments set to rise 10% this year as nations fret over energy security.
Moscow and NATO could be about to clash over Russia’s European exclave Kaliningrad.
Cathie Wood warns the Fed is ignoring dangerous signals and risks plunging the US into a recession with its huge rate hikes
Meta launches a new suite of Facebook/Instagram monetization tools.
Bitcoin could plunge even further to a low of $13,000, one strategist warns.
Sectors
Best yesterday sector: Energy, then Consumer Cyclical. Worst sector: Basic Materials.
Best weekly sector: Consumer Cyclical, then Communication Services. Worst sector: Energy.
Best monthly sector: Consumer Defensive, then Consumer Cyclical. Worst sector: Basic Materials.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 32.18
VIX (neutral under 20): 30.19
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.85
CNN Fear & Greed: 20 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 15.32%
Stocks above SMA200 (neutral above 30): 16.53%
Number of stocks that increased yesterday by more than 4%: 226
Number of stocks that decreased yesterday by more than 4%: 98
McClellan Oscillator (neutral between -100 and 100): -26.09
Earnings Reports
Industry trends will remain in focus when KB Home KBH 0.00%↑ reports its fiscal second-quarter earnings report after the June 22 close. Despite signs of a slowdown in the housing industry, analysts are still projecting solid growth in KBH's fiscal second quarter. Consensus estimates are for earnings of $2.01 per share, +34% year-over-year (YoY), and revenue of $1.6 billion (+13% YoY).
Other noteworthy earnings reports for today:
What to trade today
This is not an ideal environment for trading. Everything can happen, very hard to have an edge and identify a direction.
No plan to trade today.
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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