Trading Plan: 27 September 2022
Nasdaq (-0.60%) made a topping tail now and the price stays above support. This price action might indicate an acceptance of the support, but still too early to rely on this fact. Hard to indicate a higher probability scenario, so it is better to wait for development as we could have both a rebound (and a rally to 11500 - 12000 area) or a failed support and lower and lower prices. Just wait.
SP-500 (-1.03%) tested June’s low and closed weakly for the day. The volumes were about average, basically, we had another distribution day. We might have a consolidation here before a trend reversal or downward continuation. No need to bet the side, just wait.
In the news
Walmart enters the metaverse with Roblox experiences aimed at younger shoppers.
Macau casino operators soar as China allows tour groups after nearly 3 years.
Bitcoin surges 7% to top $20,000, its highest level in more than a week, even as stocks hit 2022 lows.
Mystery gas leaks hit major Russian undersea gas pipelines to Europe.
Sectors
Best yesterday sector: Consumer Cyclical, then Consumer Defensive. Worst sector: Real Estate.
Best weekly sector: Consumer Defensive, then Healthcare. Worst sector: Energy.
Best monthly sector: Consumer Defensive, then Healthcare. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 29.59
VIX (neutral under 20): 32.26
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.97
CNN Fear & Greed: 17 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 12.11%
Stocks above SMA200 (neutral above 30): 16.75%
Number of stocks that increased yesterday by more than 4%: 60
Number of stocks that decreased yesterday by more than 4%: 213
McClellan Oscillator (neutral between -100 and 100): -272.53
Earnings Reports
Noteworthy earnings reports for today.
What to trade today
Nothing changed from yesterday's plan: waiting is the best approach in these conditions.
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.
In order to learn more about trading, you may want to read: