Trading Plan: 23 August 2022
Nasdaq (-2.55%) gapped down with low volumes, lost its EMA21 and headed towards the minor support at 12300. Also, the price might test the SMA50 or the recent low at 11500.
SP-500 (-2.14%) also gapped down below the minor support and EMA21. Watching the recent lows marked on the graph.
In the news
Dow Falls More Than 600 Points on Fed Worries.
Ford Stock Tumbles After $1.7 Billion Verdict in Fatal Rollover Case.
Chinese Banks Cut Rates to Spur Economic Growth.
FTX grew revenue by 1,000% during the crypto craze, leaked financials show.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Technology.
Best weekly sector: Energy, then Consumer Defensive. Worst sector: Communication Services.
Best monthly sector: Energy, then Utilities. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 64.44
VIX (neutral under 20): 23.80
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.08
CNN Fear & Greed: 46 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 63.91%
Stocks above SMA200 (neutral above 30): 31.55%
Number of stocks that increased yesterday by more than 4%: 116
Number of stocks that decreased yesterday by more than 4%: 439
McClellan Oscillator (neutral between -100 and 100): -108.87
Earnings Reports
Zoom ZM 0.00%↑ pares back the annual forecast as revenue growth slows to single digits. Palo Alto Networks PANW 0.00%↑ shares are popping 8.42% after hours, following the company’s better-than-expected earnings report.
Noteworthy earnings reports for today:
What to trade today
The market is in correction, but yesterday there were some interesting breakouts from stocks showing RS PRVA 0.00%↑ AMR 0.00%↑ EVH 0.00%↑ SWN 0.00%↑ or RRC 0.00%↑. Even if there are these breakouts, this is not a time to be “very” long in the market.
Besides yesterday’s stocks, I will watch:
Tricida TCDA 0.00%↑ build a very nice bull flag, extended indeed, but these types of stocks might move in big legs. Stop Loss: EMA10 or no more than 5%.
Neurocrine Bioscineces NBIX 0.00%↑ also display a bull flag. Good accumulation, low volumes. Risk is 3#%, so a price above the black line might work. Stop Loss: EMA10.
Argenx ARGX 0.00%↑ stays very well on its EMA10. A price above the black line might work. Stop Loss: EMA21.
Matador Resources MTDR 0.00%↑ made a "cheat" entry and a price above the black line might work. 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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