Trading Plan: 28 November 2022
Nasdaq (-0.52%) made an inside day with shallow volumes. Nothing changed from the last assessment, the price stays above the EMA21 and SMA50 and it seems it builds a base here. A breakout from this consolidation area might be healthy. A breakdown below of the recent support and EMA 21 / SMA50 could signal lower prices.
SP-500 (-0.03%) closed flat and stayed at the previous trading day’s high. This bull flag pattern looks poised for higher levels… until something happens. A breakout above this resistance can send the price toward the SMA200. As always, consider the other scenario, a possible breakdown below EMA21.
In the news
Tesla recalls more than 80,000 cars in China over software and seatbelt issues.
Twitter has lost 50 of its top 100 advertisers since Elon Musk took over.
Chevron Gets New U.S. License to Pump Oil in Venezuela Again.
Protests against Covid control erupt across China.
Oil falls over $2 a barrel as China's COVID protests fuel demand fears.
Sectors
Best yesterday sector: Utilities, then Real Estate. Worst sector: Technology.
Best weekly sector: Utilities, then Real Estate. Worst sector: Energy.
Best monthly sector: Basic Materials, then Industrials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 64.96
VIX (neutral under 20): 20.50
Put / Call Ratio (neutral between 0.7 and 1): 0.94
CNN Fear & Greed: 64 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 73.00%
Stocks above SMA200 (neutral above 30): 47.54%
Number of stocks that increased yesterday by more than 4%: 74
Number of stocks that decreased yesterday by more than 4%: 21
McClellan Oscillator (neutral between -125 and 100): 71.23
Earnings Reports
Noteworthy earnings reports for today.
The most anticipated earnings releases scheduled for this week:
What to trade today
Friday was a quiet day, the price action is not bad, but I am still cautious. We are in a risky environment and even if we had some advance, the big money still stays aside.
I still like ENPH 0.00%↑ as advised on Friday. I do not plan to bet big, if the market is good, I might take 1/2 position at the black line.
Other than this, I do not plan to take any other trades.
Here is the Top 20 Industry Groups:
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: