Trading Plan: 28 June 2022
Nasdaq (-0.72%) made a (small) pullback with lower volume and succeeded to remain above the EMA21. If the price will pass yesterday’s high, we might see an advance to the SMA50. Otherwise, the recent rally was just a mean reversion and we might expect lower prices - back to the lows.
SP-500 (-0.30%) made a small retracement in the bull flag with low volumes. This move might be constructive - generally, it is not bad for an uptrend when a red candle has low volumes. Watching yesterday’s high and recent lows.
In the news
UiPath to cut 5% of its workforce as part of a restructuring plan.
Don’t get ‘sucked back in’: Fund manager says investors should learn from past bear markets.
As Klarna and Affirm falter, a new breed of ‘buy now, pay later’ startups (Mondu, Hokodo and Billie) are stealing the spotlight.
Robinhood Shares Soar on Takeover Hopes.
Taiwan Company Plans Texas Chip Wafer Factory—if Congress Approves Incentives.
NATO to dramatically increase the size of high-readiness forces to "well over 300,000”.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Communication Services.
Best weekly sector: Healthcare, then Real Estate. Worst sector: Basic Materials.
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): 26.95
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.95
CNN Fear & Greed: 29 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 28.74%
Stocks above SMA200 (neutral above 30): 19.27%
Number of stocks that increased yesterday by more than 4%: 138
Number of stocks that decreased yesterday by more than 4%: 49
McClellan Oscillator (neutral between -100 and 100): 78.76
Earnings Reports
Nike earnings top Wall Street’s expectations, despite inflation in the U.S. and Covid lockdowns in China.
Noteworthy earnings reports for today:
What to trade today
The market seems to be on pause after the good advance during the last few days. Even if it pulled back, the volumes were not high so traders identify the stocks with good RS (relative strength).
$RCMT and $LNTH were acting nicely and offered a very good opportunity to enter. I pulled the trigger on $RCMT when hit $22.82 as per my tweet.
This was a 1/2 position for me as I didn’t want to be too exposed in the market. Stop Loss at breakeven, it’s a free ride trade now.
SolarEdge SEDG 0.00%↑ is in a top sector, a price above the black line might work. Stop Loss at 5%.
Also, watching: ASAN 0.00%↑, BILL 0.00%↑, BOX 0.00%↑, DDOG 0.00%↑, DOCN 0.00%↑, GDYN 0.00%↑, GLBE 0.00%↑, LCID 0.00%↑, MNDY 0.00%↑, PATH 0.00%↑, RBLX 0.00%↑, SE 0.00%↑, SNOW 0.00%↑, ZS 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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