Trading Plan: 24 March 2022
Nasdaq (-1.32%) closed lower, but above its SMA50 with average volumes. Watching the area between the first two black lines. Most probably there will be a consolidation now with (ample) moves to both upside and downside.
SP-500 (-1.23%) was not able to stay above its SMA200. The volumes are decreasing in the last days after the FTD (follow-through day), probably the recent move is not sustainable. Watching the Tuesday high / black-line level vs. 4400 / 4150.
In the news
Russia’s position, both economically and geopolitically, looks increasingly isolated and vulnerable. Wild moves in Russian stocks as market reopens after month-long shutdown.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.50% from 4.27%.
The BA.2 subvariant, which spreads 80% faster than the earlier omicron, has more than doubled in the U.S. over two weeks and will become the dominant variant.
Nvidia Would Consider Using Intel as a Foundry, CEO Says.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Financial.
Best weekly sector: Energy, then Basic Materials. Worst sector: Real Estate.
Best monthly sector: Energy, then Basic Materials. Worst sector: Consumer Defensive.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 46.68
VIX (neutral under 20): 23.57
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.85
CNN Fear & Greed: 43 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 50.90%
Stocks above SMA200 (neutral above 30): 34.78%
Number of stocks that increased yesterday by more than 4%: 117
Number of stocks that decreased yesterday by more than 4%: 177
Earnings Reports
Tencent reported its slowest quarterly revenue growth on record in the fourth quarter of 2021.
Noteworthy earnings reports for today:
What to trade today
First of all, consider checking and adjusting Stop Loss values for all stocks as there are chances of a pullback in the market (McClellan Oscillator is still in the highs, close to the overbought territory). Of course, this indicator is not predicting, what is overbought can become “more overbought”.
I do not intend to take new full positions today, but I will watch (besides the non-triggered stocks):
Digital Ocean ($DOCN) seems to be trying again the resistance. Volumes are low, ATR is decreasing. Good above the black line. Stop Loss at yesterday low.
HubSpot ($HUBS) is setting up nicely for a possible diagonal breakout. Stop Loss at yesterday low.
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.
PS: If you have any feedback (both positive and negative) or if there are things that you do not understand, please let me know! Thank you! :)