Trading Plan: 23 June 2022
Nasdaq (-0.15%) closed a little bit lower showing us a similar move as the day before. It tried again to go higher, but no real volumes so the price came back to the same area. It seems there is no power to reach the EMA21. Watching this area between the EMA21 and the recent lows.
SP-500 (-0.13%) closed also in red by showing an “indecision” candle. Volumes were low, basically, no one wants to bet now. Let’s wait for a direction first. The environment is very risky: reversal or recession?!
In the news
Germany triggers an‘ alert level’ of the emergency gas plan and sees a high risk of long-term supply shortages.
Mark Zuckerberg envisions a billion people in the metaverse spending hundreds of dollars each.
Raw material costs for electric vehicles have doubled during the pandemic.
Elon Musk says new Tesla factories are "losing billions of dollars".
Fed chair says the recession is a "possibility" amid the inflation battle.
Sectors
Best yesterday sector: Healthcare, then Utilities. Worst sector: Energy.
Best weekly sector: Healthcare, then Real Estate. Worst sector: Energy.
Best monthly sector: Consumer Cyclical, then Consumer Defensive. Worst sector: Basic Materials.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 32.18
VIX (neutral under 20): 28.95
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.04
CNN Fear & Greed: 22 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 14.60%
Stocks above SMA200 (neutral above 30): 15.20%
Number of stocks that increased yesterday by more than 4%: 205
Number of stocks that decreased yesterday by more than 4%: 247
McClellan Oscillator (neutral between -100 and 100): -27.37
Earnings Reports
Wall Street pros, on average, expect an 11.3% year-over-year jump in revenue for Darden Restaurants' DRI 0.00%↑ fiscal fourth quarter. And that will push earnings to $2.21 per share (+8.9% YoY). But it's the company's fiscal 2023 guidance that analysts will really be watching when the Olive Garden parent steps into the earnings confessional ahead of the June 23 open.
FedEx FDX 0.00%↑ is slated to report its fiscal fourth-quarter results after the June 23 close. Analysts, on average, are expecting FedEx to report earnings of $6.88 per share, up 37.3% YoY. Revenue is projected to rise 8.4% from the year-ago period to arrive at $24.5 billion.
Other noteworthy earnings reports for today:
What to trade today
There are no constructive patterns with low-risk entries. The market is unbalanced now. Cash is better.
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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