Trading Plan: 25 April 2022
Nasdaq (-2.55%) couldn’t hold the consolidation area and broke down heavily. The market seems to be in the fear mode and testing the February lows is very likely. A small reversal is possible after this two-day big drop, but the trend is down.
All sectors from SP-500 (-2.77%) closed in red. Since there was no support, a big above to the downside was highly probable and a downtrend might keep on developing. Watching the February lows.
In the news
Netflix is finally going after password sharing.
Cathie Wood’s Flagship Fund Is Down 45% This Year. Money Is Still Flowing In.
Start-up Pony.ai says it’s the first self-driving company to get a taxi license in China.
Apple, Amazon, Microsoft Headline Busy Earnings Week.
Twitter and Elon Musk Are in Talks to Strike a Deal.
Sectors
Best yesterday sector: Utilities, then Real Estate. Worst sector: Basic Materials.
Best weekly sector: Real Estate, then Consumer Defensive. Worst sector: Communication Services.
Best monthly sector: Consumer Defensive, then Utilities. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 74.05
VIX (neutral under 20): 28.21
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.30
CNN Fear & Greed: 40 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 38.95%
Stocks above SMA200 (neutral above 30): 33.16%
Number of stocks that increased yesterday by more than 4%: 84
Number of stocks that decreased yesterday by more than 4%: 463
McClellan Oscillator (neutral between -100 and 100): -92.78
Earnings Reports
Verizon lost fewer-than-expected monthly phone subscribers in the first quarter, a sign the wireless carrier is benefiting from its hefty investments in expanding 5G services and new broadband networks. SAP revenue growth beats estimates, flags hit from Russia exit. Kimberly-Clark climbed 8.13% after smashing earnings and sales results with ease.
Noteworthy earnings reports for today & EPS estimates:
What to trade today
Again, do not fight the FED. The short-term trend is down.
Still watching $MNDY and $TWLO for a short as per the Friday plan. $MARA acting well (Stop Loss at breakeven now).
Who is right: Bill Gates with a half-billion short Tesla ($TSLA) or Elon Musk? The pattern seems bearish, so it might be a good short if the prices break down $975 area. Stop Loss: 5%.
Unity ($U) shows an inverse cup. Short under the black line with Stop Loss at 5%.
Digital Ocean ($DOCN) tries again the support. If broken, the short can work. Stop Loss at 5%.
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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