Trading Plan: 24 May 2022
Nasdaq (+1.59) had an inside day with low volumes. Basically, there is nothing different from yesterday. Traders / Investors are still waiting for a direction. Watching the recent lows and 12000 area.
SP-500 (+1.86%) had a stronger desire to overcome yesterday’s high. Since the volumes are below average, this movement might not sustainable. But let’s see the evolution and the moment when volumes appear. Double bottom or fake double bottom?! Time will tell.
In the news
Volkswagen chief says German car giant will overtake Tesla on electric vehicle sales by 2025.
Electronics are set to get even more expensive as chip giants hike their prices.
Airbnb is closing its domestic business in China.
Christine Lagarde says crypto is worth nothing.
Sectors
Best yesterday sector: Energy, then Financial. 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): 28.48
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.95
CNN Fear & Greed: 14 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 18.97%
Stocks above SMA200 (neutral above 30): 22.64%
Number of stocks that increased yesterday by more than 4%: 192
Number of stocks that decreased yesterday by more than 4%: 136
McClellan Oscillator (neutral between -100 and 100): 42.51
Earnings Reports
Snap plunges 30% after the CEO warns the company will miss revenue and earnings estimates and slow hiring. Zoom pops 16% on the first-quarter earnings beat and strong guidance.
Electronics retailer Best Buy ($BBY) is slated to unveil its first-quarter results ahead of Tuesday's open. For BBY's first-quarter, analysts, on average, are anticipating a 26.9% year-over-year (YoY) drop in earnings to $1.63 per share. Revenue is expected to arrive at $10.4 billion (-10.3% YoY).
Other noteworthy earnings reports for today:
What to trade today
Nothing changed from yesterday, let’s wait for a direction.
No plan to trade for today, just watching: $LNTH, $NC, $APA, $EGLE, $OXY.
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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