Trading Plan: 23 May 2022
Nasdaq (-0.30%) gapped up in the morning and then tested the last week's low. After this, the price reversed and closed on a positive note. It seems new support is forming and this might be good news for the bulls. A possible double bottom in forming. Watching 12000 resistance, but keep an eye on the 11000 support as well.
SP-500 (+0.01%) closed flat after a similar move (up at the opening, then down and reversal during the evening). Interesting volumes as it seems the buyers believe in this support. But do not rush things until a better confirmation. Watch 4100 and 3800 levels.
In the news
The U.S. and its Asian allies get serious about semiconductors.
Monkeypox is spreading around the world.
EV maker Lucid to accelerate plans with its Saudi Arabia factory, its first outside the U.S.
Broadcom in Advanced Talks to Buy VMware.
Food protectionism is on the rise.
Sectors
Best yesterday sector: Healthcare, then Energy. Worst sector: Consumer Cyclical.
Best weekly sector: Basic Materials, then Energy. Worst sector: Consumer Defensive.
Best monthly sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.51
VIX (neutral under 20): 29.43
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.17
CNN Fear & Greed: 11 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 15.50%
Stocks above SMA200 (neutral above 30): 21.49%
Number of stocks that increased yesterday by more than 4%: 189
Number of stocks that decreased yesterday by more than 4%: 250
McClellan Oscillator (neutral between -100 and 100): -15.25
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
No need to be the first at the party, let’s wait for a direction.
Even if the fears about a possible recession are still present, price action is the key.
So, again… no plan to trade for today, just watching. Cash is king.
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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