Trading Plan: 28 February 2022
On the way to form a double bottom pattern, Nasdaq (+1.64%) contained the move to higher levels. It is far from saying it is a new uptrend, as there are not strong volumes yet.
SP-500 good reversal continuation (+2.24%) but with average volumes. Betting in advance is not a profitable solution if there is no pattern forming. Even there are steps done for a double pattern formation, 4500 and 4600 are the levels to watch. Anyway, be also prepared for bad news as there is no real support until 4000 area.
In the news
Russian troops advance on Kyiv as Ukraine continues to resist. The world unites against Putin.
Russia's central bank more than doubles the key interest rate to 20% to boost the sinking ruble.
Investors grew concerned about the economic ramifications of the fighting between Russia and Ukraine.
Berkshire’s operating earnings surge as Buffett repurchases record $27 billion in stock during 2021 (read here Warren Buffett’s annual letter to Berkshire Hathaway shareholders)
Sectors
Best yesterday sector: Basic Materials, then Consumer Defensive. Worst sector: Technology.
Best weekly sector: Utilities, then Healthcare. Worst sector: Consumer Cyclical.
Best monthly sector: Basic Materials, then Energy. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 44.41
VIX (neutral under 20): 25.79
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.97
CNN Fear & Greed: 33 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 34.19%
Stocks above SMA200 (neutral above 30): 32.13%
Number of stocks that increased yesterday by more than 4%: 227
Number of stocks that decreased yesterday by more than 4%: 52
Earnings Reports
Noteworthy earnings reports for today: $AMBA, $AUPH, $BLNK, HPQ, $LCID, $NVAX, $PUBM, $WDAY, $ZM.
What to trade today
Energy, Fertilizers, Leisure / Travel acted well during these difficult days, but there is no point in guessing the trend. Even if there are some companies that reversed and hit or even passed their ATH, there are no low-risk entries. It is also true that the new leaders will begin to emerge now.
I will watch $DDOG, $ZS, $PANW, $TTD, $AMD, $COP, $CRWD, $NUE, but no planned trades for today. No FOMO.
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.