Trading Plan: 23 November 2022
Nasdaq (+1.36%) respected the recent support and it was rejected by the EMA21. This price action seems healthy and we might see higher prices. Nothing changed from my previous assessment, it will be better to see the price out of this small channel first to make bets. Watching the marked levels.
SP-500 (+1.36%) made a good advance but with smaller volumes. This is not necessarily bad, we are in a bear market. Of course, higher volumes were better. Still watching the marked levels for more clues.
In the news
Collapsed crypto exchange FTX has about $1.24 billion of cash in total — but still owes at least $3.1 billion.
Amazon launches second cloud region in India, pledges $4.4 billion investment.
Retail braces for wave of holiday phishing, ransomware scams.
Elon Musk names S. Korea among top candidates for EV investment.
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): 21.29
Put / Call Ratio (neutral between 0.7 and 1):1.17
CNN Fear & Greed: 62 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 71.85%
Stocks above SMA200 (neutral above 30): 45.48%
Number of stocks that increased yesterday by more than 4%: 261
Number of stocks that decreased yesterday by more than 4%: 154
McClellan Oscillator (neutral between -125 and 100): 57.75
Earnings Reports
Best Buy BBY 0.00%↑ shares surge after retailer sticks with its holiday-quarter outlook. HP HPQ 0.00%↑ laying off 4,000-6,000 employees globally over the next three years. DICK'S Sporting Goods DKS 0.00%↑ Reports Record Third Quarter Sales; Delivers 6.5% Increase in Comparable Store Sales and Raises Full Year Guidance. Abercrombie Surprises With Earnings Beat, Lifting the Stock.
Farm equipment maker Deere DE 0.00%↑ will report its fiscal fourth-quarter earnings ahead of Wednesday's open. Analysts are targeting impressive growth for DE over the three-month period ended Oct. 31, with consensus estimates for EPS at $7.12 (+72.8% YoY) and revenue of $13.4 billion (+30.3% YoY).
Other noteworthy earnings reports for today:
What to trade today
The environment is still volatile, what is up today, tomorrow is down or vice-versa (at least on my watchlist). Even if the market might go up, I do not find real CANSLIM candidates showing good patterns and low-risk entries. Still holding ASC 0.00%↑.
I will still watch the market and how it develops.
Not being a high-conviction trade, Korn Ferry KFY 0.00%↑ had a decent setup. It might work above the black line with Stop Loss at EMA21.
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: