Trading Plan: 23 March 2022
Nasdaq (+1.95%) continued its powerful reversal with above-average volumes. Watch 14.500 area and SMA200 as well. But as always, be prepared for all scenarios.
SP-500 closed above all the main averages by a wide range bar. Probably we will see the price playing between the SMA200 and the resistance at ~4600 area.
In the news
Tesla sees the Berlin factory producing up to 500,000 vehicles annually.
The metaverse may bring new cyber risks.
BuzzFeed’s earnings call Tuesday morning pointed to a continuing theme in tech: consumers are moving away from Meta’s Facebook.
The average rate on the popular 30-year fixed mortgage hit 4.72% on Tuesday, moving 26 basis points higher since just Friday, according to Mortgage News Daily.
Biden heads across the Atlantic to rally the West at a pivotal moment for Ukraine.
Sectors
Best yesterday sector: Consumer Cyclical, then Communication Services. Worst sector: Energy.
Best weekly sector: Consumer Cyclical, then Technology. Worst sector: Utilities.
Best monthly sector: Energy, then Utilities. Worst sector: Consumer Defensive.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 46.68
VIX (neutral under 20): 22.94
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.93
CNN Fear & Greed: 44 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 57.64%
Stocks above SMA200 (neutral above 30): 36.95%
Number of stocks that increased yesterday by more than 4%: 507
Number of stocks that decreased yesterday by more than 4%: 57
Earnings Reports
Carnival was the most-watched stock in the earnings calendar. It didn’t move a whole lot after it reported earnings (-0.16%). Adobe closed flat after earnings while Buzzfeed surged 8.69%.
Noteworthy earnings reports for today:
What to trade today
Very profitable trades these days, $TSLA, $DE, $NVDA, $NUE, $MELI , $BILL, $COIN or just triggered, $AMZN, $LCID, $ENPH, $OGE, $RS, $PRFT. If taken, you may consider checking and adjusting Stop Loss values.
Still watching: $AVGO.
Cloudflare ($NET) might break out from this triple bottom pattern. If the case, the trade can work, Stop Loss at 5%.
Crowdstrike is set up nicely and it can be bought above the black line. Stop Loss at 5%.
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.