Trading Plan: 24 August 2022
Nasdaq (0.00%) closed flat for the day after a reversal attempt. The minor support seems to act as good support for now. If we are looking at the pattern, we see a bear flag. So, watching now the levels is very important to get clues for the next leg: 12550 / EMA21 and 12350.
SP-500 (-0.22%) closed in red after failing to go higher. The volumes were below average. Watching Monday’s high or a close above the EMA21 and the recent low at ~4080 for now.
In the news
Amazon Prime signs a deal with DirecTV to air “Thursday Night Football” games in bars and restaurants.
U.S. new home sales tumble to 6-1/2-year low; prices still high.
Intel, Brookfield to invest up to $30 bln in Arizona chip factories.
Fed Chair Powell may not be ‘overly hawkish’ at Jackson Hole.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Real Estate.
Best weekly sector: Energy, then Utilities. 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): 24.11
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.98
CNN Fear & Greed: 45 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 61.97%
Stocks above SMA200 (neutral above 30): 30.98%
Number of stocks that increased yesterday by more than 4%: 247
Number of stocks that decreased yesterday by more than 4%: 100
McClellan Oscillator (neutral between -100 and 100): -99.22
Earnings Reports
Nordstrom JWN 0.00%↑ cuts full-year forecast, citing slowing customer demand. Dick’s Sporting Goods DKS 0.00%↑ boosts the 2022 outlook after second-quarter earnings top estimates. Macy’s M 0.00%↑ cuts full-year forecast despite strong quarter, fearing shoppers will pull back on spending.
When it comes to Dow Jones stocks, Salesforce CRM 0.00%↑ is near the bottom of the pack in terms of year-to-date performance, down more than 26%. Salesforce will report second-quarter earnings after Wednesday's close. Analysts, on average, are looking for a 21.5% year-over-year (YoY) jump in revenue to $7.7 billion. Earnings are expected to arrive at $1.02 per share (-31% YoY). Snowflake SNOW 0.00%↑ will report its second-quarter results after the today's close. Consensus estimates are for the cloud-based data platform to report a per-share loss of 1 cent, narrower than the 4 cents per share it lost in Q2 2021. Revenue is forecast at $467.2 million (+71.6% YoY).
Other noteworthy earnings reports for today:
What to trade today
The market made a pause and many stocks in Energy, Bio and Materials had a strong day. It seems that new leaders might emerge from these industries. So, for now, let’s them closely.
Here is my watchlist for today and the focus trades.
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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