Trading Plan: 27 June 2022
Nasdaq (+3.34%) continued its rally and was able to close very strongly above the EMA21 with higher volumes than the day before. This move might signal a breakout above the recent resistance at 13,324. But keep an eye also on the support at the 10,500 area, we are not out of the woods yet, everything is possible.
SP-500 (+3.06%) also closed in green above the EMA21 with above-average volumes. Good wide range bar, a lot of void to the left, a continuation is likely. Watching the recent resistance at 4,175 and the support at the 3,600 area as well. The exit from this box might offer us clues about the next leg.
In the news
Tesla's in the lead as U.S. electric car sales get supercharged.
BMW opens a $2.2 billion EV plant in China as it ramps up the challenge to Tesla, domestic players.
Russia slides into historic debt default as the payment period expires.
More Hedge Funds Are Betting Against Tether as Crypto Melts Down.
Sectors
Best yesterday sector: Communication Services, then Consumer Cyclical. Worst sector: Utilities.
Best weekly sector: Consumer Cyclical, then Real Estate. Worst sector: Energy.
Best monthly sector: Consumer Cyclical, then Communication Services. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.86
VIX (neutral under 20): 27.23
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.86
CNN Fear & Greed: 28 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 27.18%
Stocks above SMA200 (neutral above 30): 17.70%
Number of stocks that increased yesterday by more than 4%: 1098
Number of stocks that decreased yesterday by more than 4%: 299
McClellan Oscillator (neutral between -100 and 100): 27.23
Earnings Reports
Nike ($NKE) is one of two Dow Jones stocks scheduled to report earnings next week, with the fiscal fourth-quarter results from the athletic apparel retailer due out after the June 27 close. Consensus estimates are for Nike to report earnings of 81 cents per share, down 12.9% year-over-year (YoY) and revenue of $12.1 billion (-2.2% YoY).
Other noteworthy earnings reports for today:
What to trade today
It seems many stocks bottomed (not my opinion, just observing the patterns) and there are some good ideas. But do not forget, the market is below the institutions’ favorites averages: SMA200 and SMA50.
Affirm AFRM 0.00%↑ has a good-looking double bottom and nice channel line about to be broken. Good volumes during the last sessions as well and SMA50 and EMA21 are very close, ready to offer support for an igniting bar. If the market continues its uptrend and volumes come in, a breakout above Friday’s high might work. Stop Loss: EMA21.
Same idea for: AMZN 0.00%↑, ASAN 0.00%↑, BILL 0.00%↑, DDOG 0.00%↑, DOCN 0.00%↑, GLBE 0.00%↑, GTLB 0.00%↑, INMD 0.00%↑, LCID 0.00%↑, RBLX 0.00%↑, SE 0.00%↑, TSLA 0.00%↑, ZS 0.00%↑ with 5% Stop Loss.
Lantheus LNTH 0.00%↑ made a mean reversion, good advance till now, very close to EMA21 and SMA50. Entry above the black line, Stop Loss at SMA50.
Same idea for RCMT 0.00%↑.
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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