Trading Plan: 24 June 2022
Nasdaq (+1.62%) continued the good momentum and closed in under the EMA21 with higher volumes than the day before. This move might reveal more about the next leg: consolidation and continuing higher vs. mean recession and continuing lower. Looking for the W pattern to finalize while keeping an eye on the recent lows.
SP-500 (+0.95%) also went higher with average volumes, but bigger than the day before. If the market is not weak, we might see a continuation to the EMA21 and even to the SMA50 - there is a void to the left. Otherwise, watch the recent lows.
In the news
Netflix lays off 300 more employees as revenue growth slows.
JPMorgan, Bank of America and Citigroup may need to cut buybacks after Fed stress test results.
Intel warns Ohio factory could be delayed because Congress is dragging its feet on funding.
Coinbase to shut down Coinbase Pro to merge trading services.
Sectors
Best yesterday sector: Healthcare, then Real Estate. Worst sector: Energy.
Best weekly sector: Healthcare, then Real Estate. Worst sector: Energy.
Best monthly sector: Consumer Cyclical, then Consumer Defensive. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.86
VIX (neutral under 20): 29.05
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 23 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 18.94%
Stocks above SMA200 (neutral above 30): 14.41%
Number of stocks that increased yesterday by more than 4%: 623
Number of stocks that decreased yesterday by more than 4%: 209
McClellan Oscillator (neutral between -100 and 100): -0.33
Earnings Reports
Olive Garden’s parent company Darden beats earnings estimates as sales jump. The company’s combined same-store sales climbed 11.7%, fueled in part by the rebound of its fine-dining business.
Noteworthy earnings reports for today:
What to trade today
The positive note we saw in the market and the advance from the bottom for a few stocks might be a good signal.
If trading for the short term, you may consider the double bottom pattern: ASAN 0.00%↑, BILL 0.00%↑, DDOG 0.00%↑, DOCN 0.00%↑, GLBE 0.00%↑, GTLB 0.00%↑, LCID 0.00%↑, RBLX 0.00%↑, ZS 0.00%↑ with 5% Stop Loss.
I do not intend to trade. I will wait for the base to be built around the SMA50 / SMA200 and then buy the breakouts.
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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