Trading Plan: 22 November 2022
Nasdaq (-1.09%) closed at the recent support and above the SMA50 and EMA21. The low volumes might suggest a pause and a digesting after the advance. Anyway, we are not out of the woods yet and watching the marked levels is very important during these times.
SP-500 (-0.39%) is consolidating and it seems the price is preparing to offer us more clues when it clears the recent small channel. It is constructive that the volumes were low during the last days’ correction. Watching the marked levels and being prepared for all possible scenarios.
In the news
Bitcoin hits a 2-year low as $1.4 trillion was wiped off the crypto market this year after the FTX collapse.
Oil rises as Saudi comments outweigh recession concerns.
Twitter alternative Hive hits 1 million users after surging sign-ups.
Qatar seals 27-year LNG deal with China as competition heats up.
TSMC planning advanced chip production in Arizona says the company's founder.
Buffett's Berkshire boosts stakes in Japan's five biggest trading houses.
Sectors
Best yesterday sector: Consume Defensive, then Utilities. Worst sector: Consumer Cyclical.
Best weekly sector: Consumer Defensive, then Utilities. Worst sector: Energy.
Best monthly sector: Real Estate, then Basic Materials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 64.96
VIX (neutral under 20): 22.36
Put / Call Ratio (neutral between 0.7 and 1): 0.86
CNN Fear & Greed: 62 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 70.03%
Stocks above SMA200 (neutral above 30): 44.02%
Number of stocks that increased yesterday by more than 4%: 138
Number of stocks that decreased yesterday by more than 4%: 315
McClellan Oscillator (neutral between -125 and 100): 6.60
Earnings Reports
Best Buy BBY 0.00%↑ will report earnings ahead of today's open. Analysts, on average, expect the consumer electronics retailer to report earnings per share (EPS) of $1.03, down 50.5% year-over-year (YoY), and revenue of $10.3 billion (-13.4% YoY).
On Nov. 18, Credit Suisse downgraded HP HPQ 0.00%↑ stock to Neutral from Outperform. Analysts forecast earnings of 84 cents per share (-10.6% YoY) and revenue of $14.7 billion (-12.0% YoY).
Other noteworthy earnings reports for today:
What to trade today
Market seems to be on pause, hard to make a bet. Until some more clues, I think the best way is to wait.
I do not plan to open any new trades.
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: